Epilogue to the Eighties & Prologue to the Nineties:

I can recall the real sense of optimism which resulted from the end of the Cold War, formally ending with President Gorbachev’s announcement of the dissolution of the Soviet Union on Christmas Day 1991. Although never an all-out global war, it had resulted in the deaths of up to forty million people throughout the world, involving more than a hundred and fifty smaller ‘proxy’ conflicts. Moreover, we had lived under a continual sense of doom, that it was only a matter of time until our brief, young lives would be snuffed out by a nuclear apocalypse. Now, politicians and journalists in the West talked of a coming ‘peace dividend’ and the end of the surveillance, spy and secret state in both east and west. The only continuing threat to British security came from the Provisional IRA. They hit Downing Street with a triple mortar attack in February 1991, coming close to killing the new Prime Minister, John Major, and his team of ministers and officials directing the Gulf War.

By the time Margaret Thatcher left office in tears on 28 November 1990, ‘Thatcherism’ was also a spent force, though its influence lingered on until at least the end of the century, and not just among Conservatives. Only a minority even among the ‘party faithful’ had been true believers and the Tory MPs would have voted her out had her cabinet ministers not beaten them to it. As Andrew Marr has written, History is harshest to a leader just as they fall. She had been such a strident presence for so long that many who had first welcomed her as a ‘gust’ of fresh air now felt the need for gentler breezes. Those who wanted a quieter, less confrontational leader found one in John Major.

Yet most people, in the end, had done well under her premiership, not just the ‘yuppies’ but also her lower-middle-class critics who developed their own entrepreneurial sub-cultures rather than depending on traditional sponsorship from arts councils and local authorities. By the early nineties, Britons were on average much wealthier than they had been in the late seventies and enjoyed a wider range of holidays, better food, and a greater variety of television channels and other forms of home entertainment. Nor was everything the Thatcher governments did out of tune with social reality. The sale of council houses which corresponded to the long passion of the British to be kings and queens of their own little castles. Sales of state utilities, on the other hand, presupposed a hunger for stakeholdership that was much less deeply rooted in British habits, and the subsequently mixed fortunes of those stocks did nothing to help change those habits. Most misguided of all was the decision to implement the ‘poll tax’ as a regressive tax. In the end, Thatcher’s 1987-90 government became just the latest in a succession of post-war British governments that had seen their assumptions rebound on them disastrously. This ‘trend’ was to continue under John Major. The upper middle-class ‘Victorian Values’ of the grocer’s daughter from Grantham were replaced by the ‘family values’ of the lower middle-class garden gnome salesman from Brixton, only for him to be overwhelmed by an avalanche of sexual and financial scandals.

The single most important event of the early nineties in Britain, possibly globally too, had nothing to do with politics and diplomacy or warfare and terrorism, at least not in the nineties. Tim Berners-Lee, a British scientist, invented the World Wide Web, or the Internet. His idea was for a worldwide ‘hypertext’, the computer-aided reading of electronic documents to allow people to work together remotely., sharing their knowledge in a ‘web’ of documents. His creation of it would give the internet’s hardware its global voice. He was an Oxford graduate who had made his first computer with a soldering iron, before moving to CERN, the European Physics laboratory, in Switzerland in 1980, the world’s largest scientific research centre. Here he wrote his first programme in 1989 and a year later he proposed his hypertext revolution which arrived in CERN in December 1990. The ‘internet’ was born the following summer. He chose not to patent his creation so that it would be free to everyone.

The Election of 1992 – A Curious Confidence Trick?:

John Major called an election for April 1992. Under a pugnacious Chris Patten, now Party chairman, the Tories targeted Labour’s enthusiasm for high taxes. During the campaign itself, Major found himself returning to his roots in Brixton and mounting a ‘soap-box’, from which he addressed raucous crowds through a megaphone. John Simpson, the BBC correspondent, was given the task of covering Major’s own campaign, and on 15 March he travelled to Sawley, in the PM’s constituency of Huntingdon, where Major was due to Meet the People. I have written elsewhere about the details of this, and his soap-box campaign, as reported by Simpson. Although Simpson described it as ‘a wooden construction of some kind’, Andrew Marr claims it was ‘a plastic container’. Either way, it has gone down in political history, together with the megaphone, as the prop that won him the election. The stark visual contrast achieved with the carefully stage-managed Labour campaign struck a chord with the media and he kept up an act that his father would have been proud of, playing the underdog to Neil Kinnock’s government in waiting. Right at the end, at an eve of poll rally in Sheffield, Kinnock’s self-control finally gave way and he began punching the air and crying “y’awl’ right!” as if he were an American presidential candidate. It was totally ‘cringe-worthy’ TV viewing, alienating if not repulsing swathes of the very middle England voters he needed to attract.

On 9 April 1992 Major’s Conservatives won fourteen million votes, more than any party in British political history. It was a great personal victory for the ‘new’ Prime Minister, but one which was also based on people’s fears of higher taxes under a Labour government. It was also one of the biggest victories in percentage terms since 1945, though the vagaries of the electoral system gave the Tories a majority of just twenty-one seats in parliament. Neil Kinnock was even more devastated than he had been in 1987 when he had not been expected to defeat Thatcher. The only organ of the entire British press which had called the election correctly was the Spectator. Its editor, Dominic Lawson, headlined the article which John Simpson wrote for him The Curious Confidence of Mr Major so that the magazine seemed to suggest that the Conservatives might pull off a surprise win. Simpson himself admitted to not having the slightest idea who would win, though it seemed more likely to him that Labour would. Yet he felt that John Major’s own apparent certainty was worth mentioning. When the results started to become clear on that Friday morning, 10 April, the Spectator stood out favourably from the shelves of newsagents, surrounded by even the late, or early editions of newspapers and magazines which had all been predicting a Labour victory.

The only politician possibly more disappointed than Neil Kinnock, who immediately left front-line politics, was Chris Patten, who had been the real magician behind Major’s remarkable victory. He lost his seat to the Liberals in marginal Bath and went off to become the final governor of Hong Kong ahead of the long-agreed handover of Britain’s last colony in 1997. Kinnock, a former long-term opponent of Britain’s membership of the EEC/ EC went off to Brussels to become a European Commissioner. Despite his triumph in the popular vote, never has such a famous victory produced so rotten an outcome for the victors. The smallness of Major’s majority meant that his authority could easily be eaten away in the Commons. As a consequence, he would not go down as a great leader in parliamentary posterity, though he remained popular in the country as a whole for some time, if not with the Thatcherites and Eurosceptic “bastards” in his own party.  Even Margaret Thatcher could not have carried through her revolutionary reforms after the 1979 and 1983 elections with the kind of parliamentary arithmetic which was dealt her successor. In Rugby terms, although the opposition’s three-quarters had been foiled by this artful dodger of a full-back, he had been dealt a ‘hospital pass’ by his own side. For the moment, he had control of the slippery ball, but he was soon to be forced back into series of crushing rucks and mauls among his own twenty-stone forwards.

 John Smith – Labour’s lost leader and his legacy:

After Neil Kinnock gave up the Labour leadership following his second electoral defeat in 1992, he was replaced by John Smith (pictured above), a placid, secure, self-confident Scottish lawyer. As Shadow Chancellor, he had been an effective cross-examiner of Nigel Lawson, John Major and Norman Lamont and had he not died of a heart attack in 1994, three years ahead of the next election, most political pundits agreed that, following the tarnishing of the Major administration in the mid-nineties, he would have become Prime Minister at that election. Had he done so, Britain would have had a traditional social democratic government, much like those of continental Europe. He came from a family of herring fishermen on the West Coast of Scotland, the son of a headmaster. Labour-supporting from early youth, bright and self-assured, he got his real political education at Glasgow University, part of a generation of brilliant student debaters from all parties who would go on to dominate Scottish and UK politics including, in due succession, Donald Dewar, Gordon Brown, Alistair Darling and Douglas Alexander. Back in the early sixties, Glasgow University Labour Club was a hotbed not of radicals, but of Gaitskell-supporting moderates. This was a position that Smith never wavered from, as he rose as one of the brightest stars of the Scottish party, and then through government under Wilson and Callaghan as a junior minister dealing with the oil industry and devolution before entering cabinet as President of the Board of Trade, its youngest member at just forty. In opposition, John Smith managed to steer clear of the worst in-fighting, eventually becoming Kinnock’s shadow chancellor. In Thatcher’s England, however, he was spotted as a tax-raising corporatist of the old school. One xenophobic letter he received brusquely informed him:

You’ll not get my BT shares yet, you bald, owl-looking Scottish bastard. Go back to Scotland and let that other twit Kinnock go back to Wales.

Smith came from an old-fashioned Christian egalitarian background which put him naturally out of sympathy with the hedonistic culture of southern England.  Just before he became Labour leader he told a newspaper he believed above all in education, because…

 … it opens the doors of the imagination, breaks down class barriers and frees people. In our family … money was looked down on and education was revered. I am still slightly contemptuous of money.

Smith was never personally close to Kinnock but was scrupulously loyal to him as his leader, he nevertheless succeeded him by a huge margin in 1992. By then he had already survived a serious cardiac arrest and had taken up hill-walking. Though Smith swiftly advanced the careers of his bright young lieutenants, Tony Blair and Gordon Brown, they soon became disappointed by his view that the Labour party needed simply to be improved, not radically transformed. In particular, he was reluctant to take on the party hierarchy and unions over issues of internal democracy, such as the introduction of a one-member, one-vote system for future leadership elections. He was sure that Labour could regain power with a revival of its traditional spirit. At one point, Tony Blair was so dispirited by Smith’s leadership style that he considered leaving politics altogether and going back to practising law. Smith died of a second heart attack on 12 May 1994. After the initial shock and grief subsided, Labour moved rapidly away from his policy of ‘gradualism’ towards ‘Blairite’ transformation. One part of his legacy still remains, however, shaping modern Britain today. As the minister who had struggled to achieve devolution for Scotland in 1978-9, he remained a passionate supporter of the ‘unfinished business’ of re-establishing the Holyrood Parliament and setting up a Welsh Assembly. With his friend Donal Dewar he had committed Labour so utterly to the idea in Opposition, despite Kinnock’s original strong anti-nationalist stance, that Blair, no great fan of devolution himself, found that he had to implement Smith’s unwelcome bequest to him.

Black Wednesday and the Maastricht Treaty:

The crisis that soon engulfed the Major government back in the early autumn of 1992 was a complicated economic one. From August 1992 to July 1996 I was mainly resident in Hungary, and so, although an economic historian, never really understood the immediate series of events that led to it or the effects that followed. This was still in pre-internet days, so I had little access to English language sources, except via my short-wave radio and intermittent newspapers bought during brief visits to Budapest. I had also spent most of 1990 and half of 1991 in Hungary, so there were also longer-term gaps in my understanding of these matters. I have written about them in earlier articles in this series, dealing with the end of the Thatcher years. Hungary itself was still using an unconvertible currency throughout the nineties, which only became seriously devalued in 1994-96, and when my income from my UK employers also fell in value, as a family we decided to move back to Britain to seek full-time sterling salaries. The first thing that happened was that they lost their fiscal policy in a single day when the pound fell out of the ERM (European Exchange Rate Mechanism). In his memoirs, John Major described the effect of this event in stark terms:

Black Wednesday – 16 September 1992, the day the pound toppled out of the ERM – was a political and economic calamity. It unleashed havoc in the Conservative Party and it changed the political landscape of Britain.

For Major and his government, the point was that as the German central bank had a deserved reputation for anti-inflationary rigour, having to follow or ‘shadow’ the mark meant that Britain had purchased a respected off-the-shelf policy. Sticking to the mighty mark was a useful signal to the rest of the world that this government, following all the inflationary booms of the seventies and eighties, was serious about controlling inflation. On the continent, however, the point of the ERM was entirely different, intended to lead to a strong new single currency that the countries of central Europe would want to join as members of an enlarged EC/EU. So a policy which Margaret Thatcher had earlier agreed to, in order to bring down British inflation, was now a policy she and her followers abhorred since it drew Britain ever closer towards a European superstate in the ‘Delors Plan’. This was a confused and conflicted state of affairs for most of the Tories, never mind British subjects at home and abroad.

The catalyst for sterling’s fall was the fall in the value of the dollar, pulling the pound down with it. Worse still, the money flowed into the Deutschmarks, which duly rose; so the British government raised interest rates to an eye-watering ten per cent, in order to lift the pound. When this failed to work, the next obvious step would have been for the German central bank to cut their interest rates, lowering the value of the mark and keeping the ERM formation intact. This would have helped the Italian lira and other weak currencies as well as the pound. But since Germany had just reunited after the ‘fall of the wall’, the whole cost of bringing the poorer East Germans into line with their richer compatriots in the West led to a real fear of renewed inflation as well as to memories of the Berlin Crisis of 1948-49 and the hyperinflation of the Weimar period. So the Germans, regardless of the pain being experienced by Britain, Italy and the rest, wanted to keep their high-value mark and their high interest rates. Major put considerable and concerted pressure on Chancellor Kohl, warning of the danger of the Maastricht treaty failing completely since the Danes had just rejected it in a referendum and the French were also having a plebiscite. None of this had any effect on Kohl who, like a previous German Chancellor, would not move.

In public, the British government stuck to the line that the pound would stay in the ERM at all costs. It was not simply a European ‘joint-venture’ mechanism but had been part of the anti-inflation policy of both the Lawson and Major chancellorships. Then, the now PM had told the unemployed workers and the repossessed homeowners in Britain that if it isn’t hurting, it isn’t working, so his credibility had been tied to the success of the ERM ever since. It had also been, as Foreign Secretary and now as Prime Minister, his foreign policy of placing Britain ‘at the heart of Europe’. It was his big idea for both economic and diplomatic survival in an increasingly ‘globalised’ environment. Norman Lamont, who as Chancellor was as committed as Major, told ‘the markets’ that Britain would neither leave the mechanism nor deviate from it by devaluing the pound. ERM membership was at the centre of our policy and there should not be one scintilla of doubt that it would continue. Major went even further, telling a Scottish audience that with inflation down to 3.7 per cent and falling, it would be madness to leave the ERM. He added that:

“The soft option, the devaluer’s option, the inflationary option, would be a betrayal of our future.”

However, then the crisis deepened with the lira crashing out of the ERM formation. International money traders, such as the Hungarian-born György Soros, began to turn their attention to the weak pound and carried on selling. They were betting that Major and Lamont would not keep interest rates so high that the pound could remain up there with the mark – an easy, one-way bet. In the real world, British interest rates were already painfully high. On the morning of ‘Black Wednesday’, at 11 a.m., the Bank of England raised them by another two points. This was to be agonising for home-owners and businesses alike, but Lamont said he would take whatever measures were necessary to keep the pound in the mechanism. Panic mounted and the selling continued: a shaken Lamont rushed round to tell Major that the interest rate hike had not worked, but Major and his key ministers decided to stay in the ERM. The Bank of England announced that interest would go up by a further three points, to fifteen per cent. Had it been sustained, this would have caused multiple bankruptcies across the country, but the third rise made no difference either. Eventually, at 4 p.m., Major phoned the Queen to tell her that he was recalling Parliament. At 7.30 p.m., Lamont left the Treasury to announce to the press and media in Whitehall that he was suspending sterling’s membership of the ERM and was reversing the day’s rise in interest rates.

Major considered resigning. It was the most humiliating moment in British politics since the IMF crisis of 1976, sixteen years earlier. But if he had done so Lamont would have had to go as well, leaving the country without its two most senior ministers in the midst of a terrible crisis. Major decided to stay on, though he was forever diminished by what had happened. Lamont also stayed at his post and was delighted as the economy began to respond to lower interest rates, and a slow recovery began. While others suffered further unemployment, repossession and bankruptcy, he was forever spotting the ‘green shoots’ of recovery. In the following months, Lamont created a new unified budget system and took tough decisions to repair the public finances. But as the country wearied of recession, he became an increasingly easy ‘butt’ of media derision. To Lamont’s complete surprise, Major sacked him as Chancellor a little over six months after Black Wednesday. Lamont retaliated in a Commons statement in which he said: We give the impression of being in office, but not in power. Major appointed Kenneth Clarke, one of the great characters of modern Conservatism, to replace him.

In the Commons, the struggle to ratify the Maastricht Treaty hailed as a great success for Major before the election, became a long and bloody one. Major’s small majority was more than wiped out by the number of ‘Maastricht rebels’, egged on by Lady Thatcher and Lord Tebbit. Black Wednesday had emboldened those who saw the ERM and every aspect of European federalism as disastrous for Britain. Major himself wrote in his memoirs that it turned …

… a quarter of a century of unease into a flat rejection of any wider involvement in Europe … emotional rivers burst their banks.

Most of the newspapers which had welcomed Maastricht were now just as vehemently against it. The most powerful Conservative voices in the media were hostile both to the treaty and to Major. His often leaded use of English and lack of ‘panache’ led many of England’s snobbish ‘High Tories’ to brand him shockingly ill-educated and third-rate as a national leader. A constantly shifting group of between forty to sixty Tory MPs regularly worked with the Labour opposition to defeat key parts of the Maastricht bill, so that Major’s day-to-day survival was always in doubt. Whenever, however, he called a vote of confidence and threatened his rebellious MPs with an election, he won. Whenever John Smith’s Labour Party and the Tory rebels could find some common cause, however thin, he was in danger of losing. In the end, Major got his legislation and Britain signed the Maastricht Treaty, but it came at an appalling personal and political cost. Talking in the general direction of an eavesdropping microphone, he spoke of three anti-European ‘bastards’ in his own cabinet, an obvious reference to Michael Portillo, Peter Lilley and John Redwood. The country watched a divided party tearing itself apart and was not impressed.

By the autumn of 1993, Norman Lamont was speaking openly about the possibility that Britain might have to leave the European Union altogether, and there were moves to force a national referendum. The next row was over the voting system to be used when the EU expanded. Forced to choose between a deal which weakened Britain’s hand and stopping the enlargement from happening at all by vetoing it, Foreign Secretary Douglas Hurd went for a compromise. All hell broke loose, as Tory MPs began talking of a leadership challenge to Major. This subsided, but battle broke out again over the European budget and fisheries policy. Eight MPs had their formal membership of the Tory Party withdrawn. By this point, John Smith’s sudden death had brought Tony Blair to the fore as leader of the Opposition. When Major readmitted the Tory rebels, Blair jibed: I lead my party, you follow yours. Unlike Lamont’s remark in the Commons, Blair’s comment struck a chord with the country.

The concluding chapter of the Thatcher Revolution:

While the central story of British politics in the seven years between the fall of Thatcher and the arrival to power of Blair was taken up by Europe, on the ‘home front’ the government tried to maintain the momentum of the Thatcher revolution. After many years of dithering, British Rail was divided up and privatised, as was the remaining coal industry. After the 1992 election, it was decided that over half the remaining coal mining jobs must go, in a closure programme of thirty-one pits to prepare the industry for privatization. This angered many Tory MPs who felt that the strike-breaking effect of the Nottinghamshire-based Union of Democratic Mineworkers in the previous decade deserved a better reward, and it aroused public protest as far afield as Cheltenham. Nevertheless, with power companies moving towards gas and oil, and the industrial muscle of the miners long-since broken, the closures and sales went ahead within the next two years, 1992-4. The economic effect on local communities was devastating, as the 1996 film Brassed Off shows vividly, with its memorable depiction of the social impact on the Yorkshire village of Grimethorpe and its famous Brass Band of the 1992 closure programme. Effectively, the only coalfields left working after this were those of North Warwickshire and South Derbyshire.

Interfering in the railway system became and remained a favourite ‘boys with toys’ hobby but a dangerous obsession of governments of different colours. Margaret Thatcher, not being a boy, knew that the railways were much too much part of the working life of millions to be lightly broken up or sold off. When Nicholas Ridley, as Transport Secretary, had suggested this, Thatcher is said to have replied:

“Railway privatisation will be the Waterloo of this government. Please never mention the railways to me again.”

It was taken up again enthusiastically by John Major. British Rail had become a national joke, loss-making, accident-prone, with elderly tracks and rolling stock, and serving curled-up sandwiches. But the challenge of selling off a system on which millions of people depended was obvious. Making it profitable would result in significant and unpopular fare rises and cuts in services. Moreover, different train companies could hardly compete with each other directly, racing up and down the same rails. There was, therefore, a binary choice between cutting up ‘BR’ geographically, selling off both trains and track for each region, so that the system would look much the way it was in the thirties, or the railway could be split ‘vertically’ so that the State would continue to own the track, while the stations and the trains would be owned by private companies. This latter solution was the one chosen by the government and a vast, complicated new system of subsidies, contracts, bids, pricing, cross-ticketing and regulation was created, but rather than keeping the track under public control, it too was to be sold off to a single private monopoly to be called Railtrack. Getting across the country would become a complicated proposition and transaction, involving two or three separate rail companies. A Franchise Director was to be given powers over the profits, timetables and ticket-pricing of the new companies, and a Rail Regulator would oversee the track. Both would report directly to the Secretary of State so that any public dissatisfaction, commercial problem or safety issue would ultimately be the responsibility of the government. This was a strange and pointless form of privatization which ended up costing the taxpayer far more than British Rail. The journalist Simon Jenkins concluded:

The Treasury’s treatment of the railway in the 1990s was probably the worst instance of Whitehall industrial management since the Second World War.

One success story in the rail network was the completion of the Channel Tunnel link to France in 1994 (the Folkestone terminal is pictured above), providing a good example of the inter-relationship between transport links and general economic development. The Kent town of Ashford had a relationship with the railways going back to 1842, and the closure of the town’s railway works between 1981 and 1993 did not, however, undermine the local economy. Instead, Ashford benefited from the Channel Tunnel rail link, which made use of railway lines running through the town, and its population actually grew by ten per cent in the 1990s. The completion of the ‘Chunnel’ gave the town an international catchment area of eighty-five million within a single day’s journey. The opening of the Ashford International railway station, the main terminal for the rail link to Europe, attracted a range of engineering, financial, distribution and manufacturing companies. In addition to the fourteen business parks that were opened in and around the town itself, four greenfield sites were opened on the outskirts, including a science park owned by Trinity College, Cambridge. As the map above shows, Ashford is now closer to Paris and Brussels in travelling time than it is to Manchester and Liverpool. By the end of the century, the town, with its position at the hub of a huge motorway network as well as its international rail link, was ready to become part of a truly international economy.

Many of the improvements in transport infrastructure on both islands of Britain and Ireland were the result of EU funding, especially in Northern Ireland, and it was also having an impact on transport planning in Britain, with projects in the Highlands and Islands. In 1993 the EU decided to create a European-wide transport network. Of the fourteen priority associated with this aim, three are based in Britain and Ireland – a rail link from Cork to Northern Ireland and the ferry route to Scotland; a road link from the Low Countries across England and Wales to Ireland, and the West Coast rail route in Britain.

As a Brixton man, Major had experienced unemployment and was well prepared to take on the arrogant and inefficient quality of much so-called public service. But under the iron grip of the Treasury, there was little prospect for a revival of local democracy to take charge of local services again. This left a highly bureaucratic centralism as the only option left, one which gained momentum in the Thatcher years. Under Major, the centralised Funding Agency for Schools was formed and schools in England and Wales were ranked by crude league tables, depending on how well their pupils did in exams. The university system was vastly expanded by simply allowing colleges and polytechnics to rename themselves as universities. The hospital system was further centralised and given a host of new targets. The police, faced with a review of their pay and demands by the Home Secretary, Kenneth Clarke for their forces to be amalgamated, were given their own performance league tables. The Tories had spent seventy-four per cent more, in real terms, on law and order since 1979, yet crime was at an all-time high. Clarke’s contempt for many of the forces as ‘vested interests’ was not calculated to win them round to reform. Across England and Wales elected councillors were turfed off police boards and replaced by businessmen. In 1993 Clarke, the old Tory dog who had clearly learned new tricks during his time at the Department of Health where he was said to have castrated the regional health authority chairmen, defended his new police league tables in the ‘newspeak’ of governments yet to come:

The new accountability that we seek from our public services will not be achieved simply because men of good will and reasonableness wish that it be so. The new accountability is the new radicalism.

Across Britain, from the auditing of local government to the running of courts and the working hours of nurses, an army of civil servants, accountants, auditors and inspectors marched into workplaces. From time to time, ministers would weakly blame Brussels for the imposition of the cult of central control and measurement. But this was mostly a home-grown ‘superstate’. Major called this centralising policy the ‘Citizen’s Charter’, ignoring the fact that Britons are ‘subjects’ rather than citizens. He himself did not like the ‘headline’ very much because of its unconscious echoes of Revolutionary France. Every part of the government dealing with public service was ordered to come up with proposals for improvement at ‘grass-roots level’, to be pursued from the centre by questionnaires, league tables and a system of awards, called ‘Charter Marks’ for organizations that achieved the required standards. He spoke of ’empowering’, ‘helping the customer’ and ‘devolving’ and thought that regulation from the centre would not last long, rather like a Marxist-Leninist anticipating the ‘withering away’ of the state. In his case, though, this would come about as the effects of growing competition are felt. In practice, of course, the regulators grew more powerful, not less so. Despite the rhetoric, public servants were not being given real freedom to manage. Elected office-holders were being sacked. Major’s ‘withering away’ of the state was no more successful than Lenin’s.

Britain and Ireland – first steps on the road to peace:

Above: US President Bill Clinton addressing a peace rally in Belfast during his visit in 1995. Clinton played a significant role as a ‘peace broker’ in negotiations leading up to ‘the Good Friday Agreement’.

In December 1993, John Major stood outside the steel-armoured door of Number Ten Downing Street with the ‘Taoiseach’ of the Irish Republic, Albert Reynolds. He declared a new principle which offended many traditional Conservatives and Unionists. If both parts of Ireland voted to be reunited, Britain would not stand in the way. She had, said Major, no selfish strategic or economic interest in Northern Ireland. He also stated that if the Provisional IRA, which had lately bombed the very building Major was standing in front of and murdered two young boys in Cheshire, renounced violence, Sinn Fein could be recognised as a legitimate political party. In the run-up to this Downing Street Declaration, which some saw as a betrayal of the Tory Party’s long-held dedication to the Union of Great Britain and Northern Ireland, the government had been conducting ‘back channel’ negotiations with the terrorist organisation. In August 1994 the IRA finally declared a complete cessation of military operations which, though it stopped a long way short of renouncing the use of violence altogether, was widely welcomed and was followed a month later by a Loyalist ceasefire. A complicated choreography of three-strand talks, framework documents and discussions about the decommissioning of weapons followed, while on the streets, extortion, knee-capping and occasional ‘executions’ continued. But whereas the number of those killed in sectarian violence and bombings in 1993 had been eighty-four, the toll fell to sixty-one the following year, and in 1995 it was in single figures, at just nine deaths.

Long negotiations between London and Dublin led to cross-border arrangements. These negotiations had also involved the United States, where an influential pro-Irish lobby had helped to sustain the IRA campaign into the nineties through finance provided through ‘Noraid’. In the mid-nineties, President Clinton acted as a peace-broker, visiting Belfast in 1995 and helping to maintain the fragile cease-fire in the North. The contradictory demands of Irish Republicanism and Ulster Unionism meant that Major failed to get a final agreement, which was left to Tony Blair, with the ongoing help of the American ex-senator George Mitchell. The fact that in 1991 both countries had signed the Maastricht Treaty for closer political and economic unity in Europe, set a broader context for a bilateral agreement. However, while Irish political leaders eagerly embraced the idea of European integration, their British counterparts, as we have seen, remained deeply divided over it.

Economic decline/ growth & political resuscitation:

The closure of the Swan Hunter shipyard on the Tyne in May 1993 is an illuminating example of the impact of de-industrialisation. Swan Hunter was the last working shipyard in the region but had failed to secure a warship contract. An old, established firm, it was suffering some of the same long-term decline that decimated shipbuilding employment nationally to 26,000 by the end of a century. This devastated the local economy, especially as a bitter legal wrangle over redundancy payments left many former workers with no compensation whatever for the loss of what they had believed was employment for life. But the effects of de-industrialisation could spread much further than local communities. The closure of the shipyard, as shown in the map above, but the failure of the firm also had a ‘knock-on’ effect as suppliers as far afield as London and Glasgow lost valuable orders and, as a result, jobs.

By 1994, employment in manufacturing in Britain had fallen to four million from the nine million it had reached at its peak in 1966. The resulting mass unemployment hurt the older industries of the Northwest worst, but the losses were proportionately as high in the Southeast, reflecting the decline in newer manufacturing industry. Across most of Britain and Ireland, there was also a decline in the number of manufacturing jobs continuing into and throughout the 1990s. The service sector, however, expanded, and general levels of unemployment, especially in Britain, fell dramatically in the nineties. Financial services showed strong growth, particularly in such places as London’s Docklands, with its new ‘light railway’, and Edinburgh. By the late nineties, the financial industry was the largest employer in northern manufacturing towns and cities like Leeds, which grew rapidly throughout the decade, aided by its ability to offer a range of cultural facilities that helped to attract an array of UK company headquarters. Manchester, similarly, enjoyed a renaissance, particularly in the spheres of music, the media and sport.

In July 1995, tormented by yet more rumours of right-wing conspiracies against him, Major riposted with a theatrical gesture of his own, resigning as leader of the Conservative Party and inviting all-comers to take him on. He told journalists gathered in the Number Ten garden that it was “put up or shut up time”. If he lost he would resign as Prime Minister. If he won, he would expect the party to rally around him. This was a gamble, since other potential leaders were available, not least Michael Heseltine, who had become Deputy Prime Minister, and Michael Portillo, then the pin-up boy of the Thatcherites, whose supporters prepared a campaign headquarters for him, only for him to then decide against standing. In the event, the challenger was John Redwood, the Secretary of State for Wales and a highly intelligent anti-EU right-winger. Major won his fight, though 109 Tory MPs refused to back him.

Fighting the return of Fascism in Europe:

Major was also having to deal with the inter-ethnic wars breaking out in the former Yugoslavia, following the recognition of Slovenia, Croatia and Bosnia as independent states in the early nineties. The worst violence occurred during the Serbian assault on Bosnia (I have written about the bloody 1992-94 Siege of Sarajevo, its capital, in an article elsewhere on this site based on John Simpson’s reporting). The term ‘ethnic cleansing’ was used for the first time as woeful columns of refugees fled in different directions. A nightmare which Europeans thought was over in 1945 was returning, only a couple of days’ drive away from London and half a day’s drive from where I was living on the southern borders of Hungary with Serbia and Croatia.

Six years after the siege, during a school visit to the Hague, I sat in the courtroom of the International War Crimes Tribunal on the former Yugoslavia and listened, in horror, to the testimonies of those who had been imprisoned and tortured in concentration camps during the Bosnian War. I couldn’t believe that what I was hearing had happened in the final decade of the twentieth century in Europe. Those on trial at that time were the prison camp guards who had carried out the atrocities, claiming what had become known as the Nuremberg Defence. Later on, those giving the orders, both Mladko Radic and Radovan Karadzic (pictured below with John Simpson in 1993), the military and political leaders of the Bosnian Serbs, went on trial in the same courtroom, were convicted of war crimes and duly locked away, together with the former Serbian President, Slobodan Milosevic. Major had asked how many troops it would take to keep the warring three sides apart and was told the number was four hundred thousand, three times the total size of the British Army at that time. He sent 1,800 men to protect the humanitarian convoys that were rumbling south from the UN bases in Hungary.

Although many British people sent food parcels, warm clothes, medicine and blankets, loaded onto trucks and driven across the Croatian border and into Bosnia, many in the government were reluctant for Britain to become further involved. But the evening news bulletins showed pictures of starving refugees, the uncovered mass graves of civilians shot dead by death squads, and children with appalling injuries. There was a frenzied campaign for Western intervention, but President Clinton was determined not to risk the lives of American soldiers on the ground. Instead, he considered less costly alternatives, such as air strikes. This would have put others who were on the ground, including the British and other nationalities involved in the UN operation, directly into the line of retaliatory fire of the Serbian troops. When the NATO air-strikes began, the Serbs took the UN troops hostage, including British soldiers, who were then used as human shields. When the Serbs captured the town of Srebrenica and carried out a mass slaughter of its Muslim citizens, there were renewed calls for ‘boots on the ground’, but they never came.

Following three years of fighting, sanctions on Serbia and the success of the Croat Army in fighting back, a peace agreement was finally made in Dayton, Ohio. The UN convoys and troops left Hungary. Major became the first British Prime Minister of the post-War World to grapple with the question of what the proper role of the West should be to ‘regional’ conflicts such as the Balkan wars. They showed quite clearly both the dangers and the limitations of intervention. When a civil conflict is relayed in all its horror to tens of millions of voters every night by television, the pressure to ‘do something’ is intense.  But mostly this requires not air strikes but a full-scale ground force, which will then be drawn into the war itself. Then it must be followed by years of neo-colonial aid and rebuilding. Major and his colleagues were accused of moral cowardice and cynicism in allowing the revival of fascist behaviour in one corner of Europe. Yet, especially given the benefit of hindsight of what happened subsequently in Iraq and Afghanistan, perhaps Western leaders were right to be wary of full-scale intervention.

Back to basics?

For many British voters, the Major years were associated with the sad, petty and lurid personal scandals that attended so many of his ministers, after he made an unwise speech calling for the return as old-style morality. In fact, back to basics referred to almost everything except personal sexual morality; he spoke of public service, industry, sound money, free trade, traditional teaching, respect for the family and the law and the defeat of crime. It gave the press, however, a fail-safe headline charge of hypocrisy whenever ministers were caught out. A series of infidelities were exposed; children born out-of-wedlock, a death from a sex stunt which went wrong, rumours about Major’s own affairs (which later turned out to be truer than realised at the time). More seriously, there was also an inquiry as to whether Parliament had been misled over the sale of arms to Iraq, but these were all knitted together into a single pattern of misbehaviour, referred to as ‘sleaze’.

In 1996, a three-year inquiry into whether the government had allowed a trial to go ahead against directors of an arms company, Matrix Churchill, knowing that they were, in fact, acting inside privately accepted guidelines, resulted in two ministers being publicly criticised. It showed that the government had allowed a more relaxed régime of military-related exports to Saddam Hussein even after the horrific gassing of five thousand Kurds at Falluja, also revealing a culture of secrecy and double standards in the process. Neil Hamilton MP was accused of accepting cash from Mohammed al-Fayed, the owner of Harrods, for asking questions in the Commons. One of the most dramatic episodes in the 1997 election was the overwhelming defeat he suffered in his Tatton constituency by the former BBC war reporter, Martin Bell, who had been badly injured in Sarajevo who became Britain’s first independent MP for nearly fifty years. Jonathan Aitken, a Treasury minister was accused of accepting improper hospitality from an Arab business contact. He resigned to fight the Guardian over the claims, with the simple sword of truth and the trusty shield of fair play. He was found guilty of perjury, spending eighteen months in prison.

By the end of Major’s government, it seemed that the Tories might have learned the lesson that disagreements over the EU were capable of splitting their party. However, there was a general mood of contempt for politicians and the press, in particular, had lost any sense of deference. The reforms of the health service, police and schools had produced few significant improvements. The post-Cold War world was turning out to be nastier and less predictable than the early nineties days of the ‘peace dividend’ had promised. The Labour Opposition would, in due course, consider how the country might be better governed and reformed, as well as what would be the right British approach to peace-keeping and intervention now that the United States was the last superpower left standing. But in the early months of 1997,  Tony Blair and his fresh young ‘New Labour’ team, including Alistair Campbell (pictured above), were oiling their effective election-winning machine and moving in to roll over a tired-looking John Major and his tarnished old Tories.

Sources:

Andrew Marr (2008), A History of Modern Britain. Basingstoke: Pan-Macmillan.

Simon Schama (2018), A History of Britain, 1776-2000; The Fate of Empire. London: BBC Worldwide.

John Simpson (1999), Strange Places, Questionable People. Basingstoke: Pan-Macmillan.

Peter Caterall, Roger Middleton, John Swift (2001), The Penguin Atlas of British & Irish History. London: Penguin Books.

The ‘Iron Lady’ at the peak of her powers, with tank and flag, in 1986.

The Brighton Bombing:

During the 1984 Conservative Conference, an IRA bomb partly demolished the Grand Hotel in Brighton, almost killing the Prime Minister and a number of her cabinet. The action was intended as a response to Mrs Thatcher’s hard-line at the time of the 1981 Hunger Strike at the Maze Prison in Northern Ireland. The plot had been to assassinate her and the whole of the cabinet in order to plunge the country into political chaos, resulting in withdrawal from Northern Ireland. When the bomb went off at 2.50 a.m., Margaret Thatcher was working on official papers, having just finished her conference speech. The blast scattered broken glass on her bedroom carpet and filled her mouth with dust. She soon learned that the bomb had killed the wife of cabinet minister John Wakeham, he himself narrowly escaping; killed the Tory MP Anthony Berry and had badly injured Norman Tebbit, paralysing his wife. After less than an hour’s fitful sleep, she rewrote her speech and told the stunned conference that they had witnessed an attempt to cripple the government, commenting that…

… the fact that we are gathered here now, shocked but composed and determined, is a sign not only that this attack has failed, but that all attempts to destroy democracy by terrorism will fail.

The final death toll from Brighton was five dead and several more seriously injured, but its consequences for British politics, which could have been momentous, turned out to be minimal. If the IRA could not shake her, could anything else?

The Gorbachevs in London:

In November 1984, Mikhail Gorbachev arrived at the VIP terminal at Heathrow airport, together with his wife, Raisa. The British had spotted him first, in the summer of that year, if not earlier. He was a lawyer by training, which he had done at the end of the Stalin period. So, while he accepted there were rules to be obeyed, he also knew that they were only really there to be bent. He and Raisa did a great deal in their few days in London, but they did not perform the obligatory ceremony of laying a wreath on Marx’s tomb in Highgate Cemetery. Instead, they paid impromptu visits to Westminster Abbey and Number Ten Downing Street. The Foreign Office arranged a formal lunch for the Gorbachev at Hampton Court Palace, to which they invited a couple of hundred worthies, including BBC journalist John Simpson. He was seated next to a man from Moscow who was to become Gorbachev’s most senior advisors. Simpson asked him whether Gorbachev would really be able to make a difference to the Soviet Union. The Russian replied:

“He will have to,” he said. I noticed he didn’t trouble to question my assumption that Gorbachev would get the top job.

“Why?”

“Because a great deal has to be done. Much, much, more, I think, than you in the West realize.”

The Thatcher Revolution at Home – “Don’t tell Sid!”:

If Labour had been accused of creating a giant state sector whose employees depended on high public spending and could, therefore, be expected to become loyal Labour voting-fodder, then the Tories were intent on creating a property-owning democracy. The despair of Labour politicians as they watched it working was obvious. By the end of the 1980s, there was a large and immovable private sector in Britain of share-owners and home-owners, probably working in private companies, SMEs (small and medium enterprises) and increasingly un-unionised. The proportion of adults holding shares rose from seven per cent to twenty-five per cent during Thatcher’s years in power. Thanks to the ‘right to buy’ policy for council tenants, more than a million families purchased the hoses they lived in, repainting and refurbishing them and then watching their value shoot up, particularly as they had been sold them at a discount of between a third and a half of market value. The proportion of owner-occupied homes rose from fifty-five per cent in 1979 to sixty-seven per cent in 1989. In real terms, total personal wealth rose by eighty per cent in the eighties.

Looking below the surface, however, the story becomes more complex. Of the huge rise in wealth, relatively little was accounted for by shares. The increase in earnings and the house-price boom were much more important. The boom in shareholdings was fuelled by the British love of a bargain than by any deeper change in the culture. There was always a potential conflict between the government’s need to raise revenue and it hopes of spreading share ownership. In the early eighties, ministers erred on the side of the latter. The breakthrough privatization was that of fifty-two per cent of British Telecom in November 1984, which raised an unprecedented 3.9 billion. It was the first to be accompanied by a ‘ballyhoo’ of television and press advertising and was easily oversubscribed. In the event, two million people, or five per cent of the adult population bought ‘BT’ shares, almost doubling the total number of shareholders in a single day. After this came British Gas, as natural gas fields had been supplying Britain from the North Sea since the late sixties, pumping ashore at Yarmouth and Hull, replacing the coal-produced system. With its national pipe network and showrooms, natural gas had become the country’s favourite source of domestic energy and was, therefore, a straightforward monopoly. The government prepared for the sale with another TV campaign featuring a fictitious neighbour who had to be kept in the ‘dark’ about the bargain sale – “Don’t tell Sid!” This raised 5.4 billion, the biggest single privatization.

With the equally bargain-price shares offered to members of building societies when they de-mutualised and turned into banks, Britain developed a class of one-off shareholders, ‘kitchen capitalists’. They soon sold off their shares at a profit, few of them developing into long-term stock market investors, as had been hoped. Those who kept their shares did not go on to buy more, and rarely traded the ones they had acquired as a result of the privatizations, demutualisations and former employment options. The long-term failure to nurture a deeply rooted shareholding democracy has added to the contemporary criticism that public assets were being sold off too cheaply. The then Chancellor, Nigel Lawson later admitted that wider share ownership was an important policy objective and we were prepared to pay a price for it. The failure, ultimately, to achieve that objective showed that there were limits to the Thatcher Revolution. The most successful privatizations were the ones where the company was pushed into full competition, as with British Airways, Rolls-Royce and British Aerospace. The utilities – gas, electricity, water – were always different, because they were natural monopolies. Yet without competition, where would the efficiency gains come from? This question was left as a rhetorical one, unanswered until decades later. The water and electricity companies were split up in order to create regional monopolies, with power generation split into two mega-companies, National Power and Powergen. In reality, few people outside the ‘Westminster village’ cared who owned the companies they depended on, so long as the service was acceptable. Britain was becoming a far less ideological country and a more aggressively consumerist one.

Heseltine and the Helicopters:

In the winter of 1984-85, the great Westland Helicopter crisis that broke over the Thatcher government was a battle between ministers about whether a European consortium of aerospace manufacturers or and American defence company, working with an Italian firm should take over a struggling West Country helicopter maker. While this was a government that claimed to refuse to micro-manage industry, yet the fight about the future of the Yeovil manufacturer cost two cabinet ministers’ jobs and pitted Thatcher against the only other member of her cabinet with real charisma, Nigel Heseltine. The small storm of Westland gave early notice of the weaknesses that would eventually destroy the Thatcher government, though not for another five years.

One weakness was the divide throughout the Tory Party over Britain’s place in the world. By the 1980s, helicopters were no longer a marginal defence issue. They would become crucial to Britain’s capabilities, the new army mule for hauling artillery over mountains and across stretches of water. United Technologies, the US company whose Sikorsky subsidiary built the Black Hawk helicopter, wanted to gain control over part of Britain’s defence industry. Alexander Haig, Reagan’s Secretary of State who had been so helpful to Mrs Thatcher during the Falklands Campaign was now back at his old company and ‘called in his markers’ for the American bid. Adopting a position of outward neutrality would probably have favoured it anyway as a further strengthening of the Special Relationship between the UK and the US. But on the other side, supporting the European consortium, were those who felt that the EC had to be able to stand alone in defence technology. Michael Heseltine and his business allies thought this was vital to protect jobs in the cutting-edge science-based industries. The US must not be allowed to dictate prices and terms to Europe. So the conflict was concerned with whether Britain stood first with the US or with the EC. It was a question which would continue to grow in importance throughout the eighties until, in the nineties, it tore the Conservatives apart.

The second weakness exposed by the Westland Affair was the Thatcher style of government, which was more presidential and more disdainful of the role of cabinet ministers than any previous government. The Prime Minister was conducting more and more business in small committees or bilaterally, with one minister at a time, ensuring her near absolute predominance. She gathered a small clique of trusted advisors around her. Just before her fall, Nigel Lawson concluded that she was taking her personal economic advisor, Sir Alan Walters, more seriously than she was taking him, her next door neighbour in No 11, her Chancellor of the Exchequer. She used her beloved press officer, Bernard Ingham to cut down to size any ministers she had fallen out with, briefing against them and using the anonymous lobby system for Westminster journalists to spread the message.  In his memoirs, Ingham angrily defends himself against accusations of the improper briefing of the press, yet there are too many witnesses who found the Thatcher style more like that of the court of Elizabeth Tudor than that of a traditional cabinet, a place which demanded absolute loyalty and was infested with sycophantic favourites. In the mid-eighties, this was a new way of doing the business of government and to ministers on the receiving end, it was freshly humiliating.

But if there was one minister unlikely to take such treatment for long, it was Michael Heseltine (pictured below at a Conservative Party Conference). He was the only serious rival to Thatcher as the ‘darling of the party’ and media star, handsome, glamorous, rich and an excellent public speaker. He was said by his friend, fellow Tory MP and biographer, Julian Critchley, to have mapped out his future career on the back of an envelope, while still a student at Oxford, decade by decade, running through making his fortune, marrying well, entering Parliament and then, 1990s, Prime Minister. Though Heseltine commented that he could not remember doing this, it was in character. As a young man, he had flung himself into the characteristic sixties businesses of property investment and magazine publishing. A passionate anti-socialist, he had won a reputation for hot-headedness since once picking up the Mace, the symbol of Parliamentary authority, during a Commons debate about steel nationalization, and waving it at the Labour benches in such a violent manner as to earn himself the nickname ‘Tarzan’. His speeches to Tory Party conferences were full of blond hair-tossing, hilarious invective and dramatic gestures. In her memoirs, Thatcher portrayed Heseltine as a vain, ambitious man who flouted cabinet responsibility. The Westland crisis was, in her view, simply about his psychological flaws. However, they agreed about much, but was a more committed anti-racialist than she was and more deeply in favour of the EC, and she always regarded him as a serious and dangerous rival.

The two bigger beasts of the Tory Party in the eighties went to war on behalf of the two rival bidders for Westland. She was livid that he was using his position as Defence Secretary to warn the company’s shareholders about the dangers of going with the Americans, potentially shutting out European business. She thought he was tipping the scales against Sikorsky, despite Westland’s preference for them. Certainly, Heseltine repeatedly made it clear that the Ministry of Defence would not be buying their Black Hawk helicopter and did much to rally the European consortium. Thatcher, meanwhile, was deploying the public line that she was only interested in what was best for the shareholders while trying to make sure the Americans were kept in the race, ahead of the Europeans. Eventually, she sought advice from the government law officers about whether Heseltine had been behaving properly. A private reply was leaked in order to weaken his case. Furious about this wholly inappropriate act which he suspected was the responsibility of Thatcher and Ingham, Heseltine demanded a full inquiry. During a meeting of the cabinet, she counter-attacked, trying to rein him in by ordering that all future statements on Westland must be cleared first by Number Ten. Hearing this attempt to gag him, Heseltine calmly got up from the cabinet table, announced that he must leave the government, walked into the street and told a solitary reporter that he had just resigned.

The question of exactly who had leaked the Attorney General’s legal advice in a misleadingly selective way to scupper the European bid then became critical. The leaking of private advice broke the rules of Whitehall confidentiality, fairness and collective government. The instrument of the leak was a comparatively junior civil servant to the Trade Secretary, Leon Brittan. But it was unclear as to who had told Colette Brown to do this, though many assumed it was her boss, Bernard Ingham. He denied it, and Mrs Thatcher also denied any knowledge of the leak. After dramatic Commons exchanges during which she was accused of lying to the House, she pulled through, while Leon Brittan was made a scapegoat. Some of Thatcher’s greatest business supporters such as Rupert Murdoch then weighed in on the side of the American bid. Eventually, amid accusations of arm-twisting and dirty tricks, the company went to Sikorsky and the storm subsided. But it had revealed the costs of the Thatcher style of government. Getting the better of foreign dictators and militant trade union leaders was one thing, but behaving the same way with senior members of the cabinet and the Tory Party was quite another. Heseltine wrote later:

I saw many good people broken by the Downing Street machine. I had observed the techniques of character assassination; the drip, drip, drip, of carefully planted, unattributable stories that were fed into the public domain, as colleagues became marked as somehow “semi-detached” or “not one of us”.

‘Shadowing’ the Deutschmark & ‘Diva’ Diplomacy:

There were also debates and rows about economic policy in relation to the EC. The Chancellor, Nigel Lawson, wanted to replace the old, rather wobbly system of controlling the money supply targets, the Medium Term Financial Strategy, with a new stratagem – tying the pound to the German mark in the European Exchange Rate System (ERM). This was an admission of failure; the older system of measuring money was useless and in the world of global fast money. Linking the pound to the Deutschmark was an alternative, with Britain subcontracting her anti-inflation policy to the more successful and harder-faced disciplinarians of the West German Central Bank. Lawson was keen on this alternative ‘shadowing’ method; in effect, he was looking for somewhere firm to plant down policy in the context of the new global financial free-for-all. Thatcher disagreed, arguing that currencies should be allowed to float freely, but at the time little of this debate was known beyond the specialist financial world.

Other ‘Europe’- related debates were conducted more openly in general political life. The mid-eighties were years of Thatcherite drift over Europe. Jacques Delors, later her great enemy as President of the European Commission, had begun his grand plan for the next stages of ‘the union’. Thatcher knew that the ERM was intended one day to lead to a single European currency, part of Delors’ plan for a freshly buttressed European state. Lawson ignored her objections and shadowed the Deutschmark anyway. But when the cost of her Chancellor’s policy became excessive, she ordered him to stop which, under protest, he did. However, the Single European Act, which smashed down thousands of national laws preventing free trade inside the EC, promised free movement of goods, capital, services and people, and presaging the single currency, was passed with her enthusiastic support. She rejected the sceptics’ view that when the continental leadership talked of an economic and political union, they really meant it.

Back in the mid-eighties, personal relationships mattered as much in modern diplomacy as they had in Renaissance courts, and the Thatcher-Gorbachev courtship engaged her imagination and human interest. She was becoming the closest ally of Ronald Reagan, in another international relationship which was of huge emotional and political significance to her. In these years she became an ‘international diva’ of conservative politics, feted by crowds from Russia and China to New York. Her wardrobe, coded depending on where an outfit had been first worn, told its own story: Paris Opera, Washington Pink, Reagan Navy, Toronto Turquoise, Tokyo Blue, Kremlin Silver, Peking Black. Meanwhile, she was negotiating the hard detail of Hong Kong’s transitional status before it was handed over to Communist China in 1997. She got a torrid time at Commonwealth conferences for her opposition to sanctions against the apartheid régime in South Africa. At home, the problem of persistently high unemployment was nagging away, though it started to fall from the summer of 1986 seemed to fall.

The Bombing of Libya and ‘BBC Bias’:

Then there was the highly unpopular use of British airbases for President Reagan’s attack on Libya in 1986. This provoked a controversy, not for the first time, between the BBC and the Thatcher government. The PM’s supporters on the right of the Tory Party had long been urging her to privatize the BBC and she herself appeared to believe that it was biased against her government; by which she meant that it was too independent. She still remembered the irritation she felt at some of the phrases its leading broadcasters had used back in the Falklands War: if we are to believe the British version, etc.  Her view was that as the British Broadcasting Corporation, a public service broadcaster supported by the television license fee, it should give the British government’s view without questioning it. Yet it was perfectly obvious that the reason the BBC was so respected both in Britain and abroad was that it was genuinely independent of the British government. The BBC was legally obliged by its Charter to remain independent of party political control. Lord Reith, its first Director-General, had successfully resisted Churchill’s attempt to take over its radio service for government propaganda during the General Strike of 1926. It was one of the few great organs of state which Margaret Thatcher was not able to dominate in some way, a constitutional reality which made her visibly restless on occasions.

Because the American aircraft which bombed Libya took off from bases in Britain, that made it a British issue. The pretext for the attack was a terrorist attack on a Berlin nightclub used by American servicemen, but far from being the work of Libyan agents, it proved to have been carried out by a group linked to the Syrian government. There was a good deal of public disquiet about it, especially since it was strongly suspected that the Reagan administration was primarily bombing Libya to teach bigger and more formidable countries, chiefly Iran, a lesson. Libya was a feeble, though intermittently nasty little dictatorship which could never organise significant acts of state terrorism. The real battle was a propaganda one. Colonel Gaddafi (pictured below in 1979) claimed that his daughter had been killed in the raid, and showed her body to the journalists in Tripoli at the time. It wasn’t until some time later that it became clear that he had adopted the little girl as she lay dying from her injuries. But whoever’s daughter she was, she was certainly killed by the American bombing.

The British government was rather rattled by the hostility which sections of the public were starting to show over the bombing; and since, at the times of crisis, people tend to turn to the BBC for their information, some senior ministers felt that this public opposition was the fault of the BBC and wanted it to be taught a lesson. The chairman of the Conservative Party, Norman Tebbit, announced that he would be investigating the BBC’s coverage of the raid. The BBC allowed itself to seem rattled by the threats he and his party made, which made him feel justified in his approach. John Simpson, the BBC’s World Affairs Editor recalled sitting with a few journalists in the canteen at the Television Centre when the tannoy went:

‘PBX. Calling Mr John Simpson.’

I hurried over to the phone. The deputy editor of television news was on the other end.

“We’ve just had Tebbit’s report,” he said. “It’s serious. The editor would be grateful if you could get up here.”

I finished my fish and went up. A small group of worried-looking people were sitting round in the editor’s office. The editor handed me a copy of the document Tebbit and his researchers at Conservative Central Office had compiled. I looked through it rather nervously, anxious to see what it had to say about my own reporting of the attack. It made a few neutral comments, then one which was rather complimentary; that was all.

“That’s all OK,” I blurted out, voicing my own relief. Nothing much there.” 

The editor turned to me. I could see a faint ray of hope was glimmering for the first time.

“You think so?”

I realised that I had been speaking purely for myself. But it seemed unkind and unreasonable to destroy his only cause for optimism. He must have felt that his career was on the line.

“Oh sure, it’s full of loopholes. Just go through it carefully and you’ll find them all,” I said.

I hadn’t read it carefully enough to know if that were true, but I have never yet read a long document that you couldn’t pick holes in.

Chris Cramer, a tough character who was the news editor at the time… agreed. Cramer and I were both affronted by the idea that in a free society the government should presume to dictate to the broadcasters and try to make them report only what the government wanted. Maybe we were both chancers too.

“John’s right,” he said. “We should go through this with a fine-tooth comb. We’ll find lots of things wrong with it.”

Which is what happened. We divided the Conservative Central Office document up between us, and spent the next couple of days going through it point by point. The document compared the BBC’s coverage of the raid unfavourably with ITN’s, and tried to make the case that the BBC had been deliberately biased. Some of the individual points it made were reasonable enough: the news presenter on the night of the bombing had added various inaccuracies to the sub-editors’ scripts. (Soon afterwards she left the BBC.)

But it was silly to try to pretend that there was some underlying bias. I have never yet found a senior Conservative who really believed that…  

It hadn’t occurred to Norman Tebbit that the BBC would stand its ground since in the past it had fallen over itself with nervousness at the mere suggestion that the government of the day was upset with it. When it issued its response there was a big wave of public support for the BBC, partly because Kate Adie had established herself in the public eye as a brave, serious reporter, staying in Tripoli when the bombs were falling. Previously, women reporters had tended to be given social affairs to report on. Here was a woman who had become a war correspondent; something unprecedented on British television at that time, though there have been many equally brave successors since. But there was also public support for the BBC because, for all its failings, the BBC was considered to be as British an institution as any other in the country, and ninety per cent of the population had some contact with it each week in the pre-internet era. Norman Tebbit had failed to realise the British people did not like party political attacks on ‘Auntie’. An opinion poll taken shortly afterwards indicated that Conservative voters supported ‘the Beeb’ on almost the same scale as voters for other parties. Thatcher, aware that she would have to call a general election within the next year or so, quickly distanced herself from her erstwhile lieutenant’s campaign, leading to the first rift between the two of them. On the night she won the 1987 election, Simpson tried to interview her by the railings of St John’s, Smith Square, next to Conservative Central Office, amid rabid Young Conservatives chanting calls for the privatisation of the BBC:

Transcript of interview with Prime Minister, 18.6.87:

Speakers: Rt Hon Margaret Thatcher, PC MP (non-staff), John Simpson (contract)…

JS: The crowd here seem to want you to privatise the BBC. Are you planning to do that?

MT: Well, I think… Well, you know, I must really go and speak to them.

Of course, she never again considered doing so, even if she had been temporarily persuaded by Tebbit’s arguments. She knew what people would stand for, and what they wouldn’t; it was when this instinct finally deserted her that her decline and fall began.

The ‘Poll Tax’ and the Peasants:

After the election, a wider dilemma emerged right across domestic policy, from the inner cities to hospitals, schools to police forces. Thatcher believed that government should set the rules, deliver sound money and then stand back and let other people get on with providing services. In practice, she often behaved differently, always more pragmatic and interventionist than her image suggested. At least, however, the principle was clear. But when it came to the public services there was no similar principle. She did not have the same respect for independent ‘movers and shakers’ in the hospitals, schools and town halls as she had for entrepreneurs and risk takers she admired in business. Before the Thatcher revolution, the Conservatives had been seen, on balance, defenders of local democracy. They had been strongly represented on councils across the country and had been on the receiving end of some of the more thuggish threats from Labour governments intent, for instance, on abolishing grammar schools. The town and county hall Conservatives had seen local representatives on hospital boards and local education authorities as bulwarks against socialist Whitehall. Margaret Thatcher herself had begun her political apprenticeship doing voluntary public work for her father, Alderman Roberts, sitting on various unpaid committees.

Yet in power, Thatcher and her ministers could not trust local government, or any elected and therefore independent bodies at all. Between 1979 and 1994, an astonishing 150 Acts of Parliament were passed removing powers from local authorities and switched to unelected quangos. The first two Thatcher governments transferred power and discretion away from people who had stood openly for election, and towards the subservient agents of Whitehall, often paid-up Tory party members. Despite his apparent love for Liverpool before the Militant takeover, Michael Heseltine attacked the whole of local government with new auditing with new auditing arrangements, curbs on how much tax they could raise, and spending caps as well. In the health service, early attempts to decentralize were rapidly reversed and a vast top-down system of targets and measurements was put in place, driven by a new planning organisation. It cost more and the service, undoubtedly, got worse. Similar centralist power-grabs took place in urban regeneration, where unelected Urban Development Corporations, rather than local councils, were given money to pour into rundown cities. The biggest city councils, most notably the Greater London Council, were simply abolished. Its powers were distributed between local borough councils and an unelected central organisation controlled by Whitehall. By 1990 there were some twelve thousand appointed officials running London compared with just 1,900 elected borough councillors. Housing Corporations took ninety per cent of the funds used by housing associations to build new cheap homes. In the Thatcher years, their staff grew sevenfold and their budgets twenty-fold.

Margaret Thatcher would say the poll tax, the name associated with the tax per head which was the catalyst for the bloody Peasants’ Revolt of 1381, was actually an attempt to save local government. Like schools, hospitals and housing, local councils had been subjected to a barrage of ministers trying to stop them spending money, or raising it, except as Whitehall wished. Since 1945, local government had been spending more, but the amount of money it raised independently still came from a relatively narrow base of people, some fourteen million property-owners. Thatcher had been prodded by Edward Heath into promising to replace this tax, ‘the rates’, as early as 1974, but nobody had come up with a plausible and popular-sounding alternative. She had always disliked the rates system intensely, regarding them as an attack on self-improvement and other Tory values, and in government, the problem nagged away at her. Once, local elections were not national news; they were about who was best suited to run towns and counties, but in the late sixties and seventies they became national news, a regular referendum on the central government. Under Thatcher, the Conservatives lost swathes of local councils, resulting in more Labour-controlled councils which were even more distrusted by the central government, resulting in more powers away from them. The elections became even less relevant, fuelling more protest voting, and it soon became clear to government ministers that more councils were aping Liverpool by pursuing expensive hard-left policies partly because so few of those who voted for them were actually ratepayers themselves, therefore feeling no personal ‘pinch’.

One way of correcting this anomaly would be to make all those who voted for local councils pay towards their cost. This was the origin of the poll tax or community charge as it was officially called, a single flat tax for everybody. It would mean lower bills for many homeowners and make local councils more responsive to their voters. On the other hand, it would introduce a new, regressive tax for twenty million people, with the poorest paying as much as the richest. This broke a principle which stretched back much further back than the post-war ‘consensus’ to at least the 1920s and the replacement of the Poor Law. But Public Assistance or social security as it was now known, was no longer charged or administered locally so that there was some logic in the change to a flat, universal charge. This proposal was sold to the Prime Minister by Kenneth Baker at a seminar at Chequers in 1985, along with the nationalisation of business rates. Nigel Lawson tried to talk the Prime Minister out of it, telling her it would be completely unworkable and politically catastrophic. The tax was discussed at the same cabinet meeting that Michael Heseltine walked out of over the Westland affair. It might have worked if it had been brought in gradually over a whole decade, as was first mooted, or at least four, as was planned at that meeting.

But at the 1987 Tory Conference, intoxicated by the euphoria of the recent third election victory, party members urged Thatcher to bring it in at once. She agreed since there was some urgency resulting from the dramatic increase in property prices in the eighties. Rates, like the subsequent council tax, were based on the relative value of houses across Britain, changing with fashion and home improvement. This meant that, periodically, there had to be a complete revaluation in order to keep the tax working. Yet each revaluation meant higher rates bills for millions of households and businesses, and governments naturally tried to procrastinate over them. In Scotland, however, a different law made this impossible and a rates revaluation had already happened, causing political mayhem. As a result, Scottish ministers begged Thatcher to be allowed the poll tax first, and she also agreed to this. Exemptions were made for the unemployed and low paid, but an attempt, by nervous Tory MPs, to divide the tax into three bands so that it bore some relation to people’s ability to pay was brushed aside despite a huge parliamentary rebellion. When the tax was duly introduced in Scotland, it was met by widespread protest. In England, the estimates of the likely price of the average poll tax kept rising. Panicking ministers produced expensive schemes to cap it, and to create more generous exemptions, undermining the whole point of the new tax. Capping the tax would remove local accountability; the more exemptions there were, the lesser the pressure would be on the councils from their voters. Yet even the PM grew alarmed as she was told that over eighty per cent of voters would be paying more. Yet she pushed ahead with the introduction of the tax, due to take effect in England and Wales on 1st April 1990.

Bruges Bluntness & Madrid Madness:

The poll tax was one of the causes of her downfall in that following year, the other being Europe. This factor began to be potent in 1988, when turned against Jacques Delors’ plans and went to Bruges in Belgium to make what became her definitive speech against the federalist tide which was now openly advancing towards her. The Foreign Office had tried to soften her message, but she had promptly pulled out her pen and written the barbs and thorns back in again. She informed her audience that she had not…

… successfully rolled back the frontiers of the state in Britain only to see them reimposed at a European level, with a European super-state exercising a new level of dominance from Brussels.

There was much else besides. Her bluntness much offended continental politicians as well as her own Foreign Secretary, Sir Geoffrey Howe. Next, she reappointed her monetarist economic advisor, Sir Alan Walters, who was outspokenly contemptuous of Lawson’s exchange rate policy. So, she was taking on two big cabinet beasts with great Offices of State at the same time, creating a serious split at the top of government. Then, Jacques Delors, the determined French socialist re-entered the story, with a fleshed-out plan for an economic and monetary union, which would end with the single currency, the euro. To get there, all EU members would need to put their national currencies into the ERM, which would draw them increasingly tightly together, which was just what Lawson and Howe wanted and just what Thatcher did not. Howe and Lawson ganged up, telling her that she must announce that Britain would soon join the ERM, even if she left the question of the single currency to one side for the time being. On the eve of a summit in Madrid where Britain was due to announce its view the two of them visited Thatcher together in private, had a blazing row with her and threatened to resign together if she did not give way. She did, and, for the time being, the crisis abated.

Piper Alpha – The Price of Oil and Who Profited?

In June 1988, 185 men were burned or blown to death in the North Sea when an oil platform, Piper Alpha, blew up, yet there has been little commemoration of the tragic event over the past thirty years, in popular memorials (as contrasted with earlier coal-mining disasters of a similar scale), political memoirs or the general media. In the case of oil, the great adventure was lived out at the margins of British experience, halfway to Scandinavia, with its wild scenes played out in the bars of Aberdeen and Shetland, far removed from the media in Glasgow, never mind London. Exploration, equipment and production were also largely controlled by American companies. The number of British refineries actually fell in the eighties, the peak decade for oil production, from twenty-one to thirteen, and forty per cent of those were also owned by US-based companies. According to Nigel Lawson, the revenues from oil taxes gave ‘a healthy kick-start’ to the process of cutting the government deficit, though he always argued that the overall impact of North Sea oil was exaggerated, especially by the Scottish Nationalists (SNP). Ireland also benefited greatly from new investment from the United States in the search for new sources of oil and gas in Irish waters from the 1970s, and their exploitation in the eighties. In addition, as a poorer member state of the EU, the Republic gained a disproportionately larger share of the EU budget than the UK as a whole, so that by the end of the decade the Irish economy was expanding rapidly and the long-term pattern of Irish emigration was being reversed. Both British and Irish trade with the EU increased, and Ireland’s economy became less dependent on Britain’s.

Birt, the BBC & Beijing:

Following its own battles with Margaret Thatcher and Norman Tebbit following the bombing of Libya, by the end of the eighties the BBC went on to become the biggest newsgathering organisation in the world and its reputation for accurate, impartial reporting continued to grow around the globe. In 1988, John Birt joined the Corporation as head of news and current affairs, reforming and revitalising that area before going on to become director-general. Under his leadership, there was a five-fold expansion. The foreign affairs unit grew to eleven people, and Simpson was made the head of it. The expansion came just in time considering how much the world was to change in the following year, in a series of seismic upheavals which affected almost every country on earth. In May 1989, Simpson and Adie teamed up in Beijing, covering the infamous massacre in Tiananmen Square:

In the BBC’s offices I found the redoubtable Kate Adie. She had been out in the streets all night with her camera team, and was in bad shape. A man had been killed right beside her, and her arm had been badly grazed in the incident. Together we assembled our reports. There was no time to edit words to pictures, nor even of seeing the pictures. All we could do was write our scripts, record them, and send them off to Hong Kong with the cassettes.

I sat at the computer, numbed by everything I had seen and determined not to get too emotional about it. I’d made real friends among the students in Tiananmen Square. The thought that they might now be dead or injured, that one of their best and most decent manifestations of recent times had been snuffed out in front of me was too disturbing and too painful for me to deal with. And so I took refuge in the old BBC concepts of balance and objectivity; there wasn’t an ounce of emotion in my script.

Kate’s report was very different. It was full of emotion. Six months later, when I finally watched the two reports side by side, I thought that while mine was perfectly accurate it had nothing to do with the real feeling of what had taken place. Hers did. I suppose the two were complimentary, and they were certainly used side by side on the news in Britain. 

Above. The Morning of 20 May in Tiananmen Square.

A Tale of Two Cities – a Hell of a Dickens:

On 14th July 1989, Simpson was in Paris, reporting on the meeting of the ‘G7′, the leaders of the West’s seven leading capitalist powers, hosted by Francois Mitterrand, the French President. With hindsight, the two hundredth anniversary of the French Revolution was perhaps the single moment which best reflected the triumph of liberal democracy over all rival systems of government. The wealth, the grandeur, the personal liberty, the prestige and power which were on display were greater than the world had seen before. Soon, however, the decline in the power of the United States became more obvious. Margaret Thatcher still seemed unassailable as Britain’s prime minister, but would be politically vulnerable within a few months. While President Bush handed over the key to the Bastille which Lafayette had taken with him to America shortly after the Revolution, her gift to Mitterand was a first edition copy of Dickens’ Tale of Two Cities: inexpensive, and not very good as history. It was a grudging, insular gesture, typical of British attitudes towards France in the 1980s, which had chosen to follow an economic policy which was the exact opposite of Thatcherism. She disapproved not just of France, but of the occasion and the whole business of celebrating revolution. Her view was that evolution was greatly preferable to revolution, which was of little use to those, in 1789 or 1989, who lived under an autocracy which refuses to evolve. Although Mrs Thatcher may have helped to persuade Ronald Reagan that Mikhail Gorbachev was ‘a man to do business with’, according to John Simpson…

It wasn’t Mrs Thatcher’s economic principles which caused the changes in the Soviet bloc, but the simple, verifiable fact that Western capitalist society was effective, rich and reasonably free, while the countries of the communist bloc were manifestly not.

In the same month, four weeks after her climb-down at the Madrid summit, Thatcher hit back at her Chancellor and Foreign Secretary. Back in London, she unleashed a major cabinet reshuffle, compared at the time to Macmillan’s ‘night of the long knives’ in 1962. Howe was demoted to being Leader of the Commons, though she reluctantly agreed to him having the face-saving title of Deputy Prime Minister, a concession rather diminished when her press officer, Bernard Ingham, instantly told journalists that it was a bit of a non-job. Howe was replaced by the relatively unknown John Major, the former chief secretary. Lawson survived only because the economy was weakening and she thought it too dangerous to lose him just at that point. He was having a bad time on all sides, including from the able shadow chancellor John Smith. When Walters had another pop at his ERM policy, he decided that enough was enough and resigned on 26 October, telling the PM she should treat her ministers better. He was replaced by the still relatively unknown John Major.

Budapest, Berlin & Bucharest: Falling Dominoes of 1989:

Meanwhile, all around them, the world was changing. On 23rd October I was in Hungary on a third, personal visit, when the country changed its name and constitution. It had dropped the word ‘People’s’ from its title and was henceforth to be known simply as the Republic of Hungary. My first visit, an ‘official’ one, as a member of a British Quaker delegation, had been exactly a year earlier, when the withdrawal of Soviet troops had been announced, along with the decision of the then communist government that the 1956 Revolution, which had begun on the same day, would no longer be referred to by them as a ‘counter-revolution’. A few days later in 1989, East Germany announced the opening of its borders to the West and joyous Berliners began hacking at the Berlin Wall.

Then the communists in Czechoslovakia fell, and at Christmas the Romanian dictator Ceaucescu was dragged from power and shot, along with his wife. According to John Simpson, who also witnessed all these events, including those in Bucharest at close quarters (as pictured above), found among the dictators’ possessions was a Mont Blanc pen given to him by the British Labour Party, presumably during the couple’s visit to London in 1978. This was instigated by the then Foreign Secretary, Dr David Owen who, along with James Callaghan, persuaded the Queen against her will that the Ceaucescus should be invited. The pictures below show them riding in State along the Mall. But I have written about all these events elsewhere.  Suffice it to say, just here, that, since the early seventies, politicians of all persuasions were prepared to overlook Ceaucescu’s increasing megalomania and the unpleasantness of the government he controlled because he represented an independent voice within the Warsaw Pact, refusing to send Romanian forces to crush the ‘Prague Spring’ in 1968. As early as 1972, a left-wing Labour MP had written:

As a result of unconditional acceptances of the past abuses of the legal system, Ceaucescu has declared that steps must be taken to ensure that such injustices can never occur in the future. The importance of democracy is therefore being increasingly stressed and… there is no question of rigging trials as occurred in the past. … Interference by anyone, no matter how important, is unacceptable in Ceaucescu’s view. 

The not-so-beautiful relationship which came to an end with the shooting of the ‘Tsar and Tsarina’ who built their own palace (below) in Bucharest after visiting Buckingham Palace.  It was due to be completed just weeks after their overthrow.

After meeting Ceaucescu on his state visit in 1978, Margaret Thatcher, then the leader of the opposition, commented:

I was impressed by the personality of President Ceaucescu … Romania is making sustained efforts for consolidating peace and understanding.  

The ‘domino’ events of the Autumn and Winter of 1989 in the eastern part of the continent, in which Margaret Thatcher had played a ‘bit part’ alongside Reagan and Gorbachev, would have a ripple effect on her own fall from power the following year. That was not something many of us involved in East-West relations anticipated even at the end of that year.

Sources:

Andrew Marr (2008), A History of Modern Britain. Basingstoke: Macmillan Pan.

John Simpson (1998), Strange Places, Questionable People. Basingstoke: Macmillan Pan.

John Simpson (1990), Despatches from the Barricades: An Eye-Witness Account of the Revolutions that Shook the World, 1989-90. London: Hutchinson.