Margaret’s Marvellous Medicine:
Ten years ago, nearly thirty years after Mrs Thatcher’s first general election as Tory leader, Andrew Marr wrote:
Margaret Thatcher … was shrewd, manipulative and bold, verging on the reckless. She was also extremely lucky. Had Labour not been busy disembowelling itself and had a corrupt, desperate dictatorship in South America not taken a nationalistic gamble with some island sheep-farmers, her government would probably have been destroyed after a single term. Had the majority in her cabinet who disagreed with her about the economy been prepared to say boo to a goose, she might have been forced out even before that. In either case, her principles, ‘Thatcherism’, would be a half-forgotten doctrine, mumbled about by historians instead of being the single most potent medicine ever spooned down the gagging post-war British.
The one economic medicine so bitter that no minister in the seventies had thought of trying it – mass unemployment – was soon uncorked and poured onto the spoon. Inflation, not unemployment, was seen as public enemy number one, and harsh measures seemed justified. Indeed, as wage-rises were seen as the as the main source of inflation, heavy unemployment, it was sometimes argued, would weaken trade unions and was a price worth paying. An economic squeeze was introduced, involving heavy tax increases and a reduction in public borrowing to deflate the economy, thus reducing demand and employment. In the 1980s, two million manufacturing jobs disappeared. The socially corrosive effects of mass unemployment were manifested nationwide in the inner-city rioting which broke out in 1981. The post-war consensus was well and truly broken. After his defeat in the General Election of 1979, James Callaghan stumbled on as Labour leader until October 1980 after which Denis Healey fought a desperate rearguard action against the left, as his party did its best to commit suicide in public. What exactly was ‘the left’ and how was it composed?
Labour’s ‘Disembowelment’:
By the late 1970s, the Communist Party of Great Britain had almost collapsed. What was left of it had become ‘Eurocommunist’, like the parties in France and elsewhere had become following the crushing of the Prague Spring in 1968. The world’s first elected Marxist leader, Salvador Allende had been deposed in a coup in 1973 and thousands of his supporters became refugees in Britain. Where I lived in 1979-80, Swansea, there was a community of about fifty families, many of them studying at the University. For many of them, Castro’s Cuba was still a beacon of hope, and there were other Marxist movements in Nicaragua and El Salvador which re-focused the outlook of the ‘broad left’ in Britain. But there was widespread disillusionment with the Soviet system to which the CPGB had previously pledged its undying and largely uncritical obedience. The final nails in the coffin were driven in by the Soviet invasion of Afghanistan in late 1979, and the crushing of ‘Solidarity’ in Poland the following year. Further to the left were a bewildering number of Trotskyist and Maoist groups, all hostile to the Soviet Union, all claiming to be the true party of Lenin, all denouncing one another over ideological and tactical detail. They tended to be dour and puritanical, though the Socialist Workers’ Party attracted a significant among students following through their setting up of the Anti-Nazi League.
The Militant Tendency had descended from earlier groups which had first organised in Britain in the forties. ‘Militant’ caused a huge convulsion in the Labour Party from the early to mid-eighties. Harold Wilson was the first Labour leader to complain a lot about ‘Trots’ trying to take the party over, but in the seventies, he was largely ignored and Militant was allowed to build up strong local bases, particularly in Liverpool, but also in other traditional Labour strongholds in the Midlands which had been very much in ‘the mainstream’ of the Party, like Coventry, where it had taken control of the City Council as early as 1937, and had continually returned high-profile MPs such as Richard Crossman and Maurice Edelman after 1945. The SWP, supporting strikes and campaigning against racism and other ‘single issues’, sold their distinctive newspaper on the streets and their clenched fist logo and dramatic slogans appear in the background to countless industrial and political marches, pickets and marches. In South Wales in 1980, they organised ‘the people’s march for jobs’, a 1930s-style ‘hunger march’. By this time, mass unemployment had already arrived in Britain, especially among young people who had just left school and, as ever, the SWP seized their opportunity. Beyond Militant and the SWP, other far-left groups inside and outside the Labour Party would achieve brief notoriety because they were supported by a famous actress, such as Vanessa Redgrave of the Revolutionary Workers’ Party, or through influence in a local party or borough. Eventually, the ‘loony left’ would come to the boil, enjoying enough support, particularly in London, to shred Labour’s credibility.
In the late seventies and early eighties, however, the influence of ‘hard left’ socialists within the party was far more significant than those working for secretive Marxist parties. Like those on the right, including Callaghan by 1979, they believed the old consensus politics was failing. Some of their thinking was also shared by the Tory right – they were hostile to the European Community, opposed to Welsh and Scottish nationalism, and hostile to the Anglo-American alliance. But that was where the similarities ended. The Labour left wanted to deal with world economic chaos by pulling up the drawbridge, imposing strict controls on what was imported and taking control of major industries, as well as of ‘the City’. The left thought that ‘Planning’ was too weak, and therefore that it should be dramatically expanded. Any extreme political view tends to develop a conspiracy theory. The Labour left believed that Wilson, Callaghan and Healey had been captured by international capitalism. So the ‘siege economy’ and the Alternative Economic Strategy became the main shibboleths of the left, and Tony Benn became the leader of Labour’s peasants’ revolt. He was on the side of strikers who had brought much of the country to a halt in 1979 and Arthur Scargill, elected leader of the NUM soon after, told Benn that he could be the next Labour leader himself.
But within five years, both the NUM and their fellow unions would lose almost half their membership and any political influence they had briefly enjoyed. The ‘high-water’ mark for the left was reached when Benn himself came within a hair’s breadth of winning the deputy leadership against Denis Healey, during the middle of a vicious and deeply damaging Labour civil war. These were the turbulent years of ‘Bennism’ within the party, long before he became a kind of revered national grandfather with a white beard to go with his pipe. During his bid to become deputy, I heard him speak to a packed and transfixed audience at the Brangwyn Hall in Swansea in 1980, careful and convincing in his critique of NATO, nuclear weapons and market capitalism, if not in his advocacy of the Alternative Economic Strategy. In the NUS, David Aaronovitch spoke in favour of the AES in a debate in Blackpool on the economy which he admitted afterwards had disappointed him for its lack of new thinking. Speaking to the NUS Wales Conference a few weeks later on the same issue, I adapted a headline from The Guardian:
When England catches a cold, Wales gets influenza: When England gets influenza, Wales develops pneumonia.
Wales: A View from the Abyss:
In 1979-80, Wales was in need of a stronger and better alternative medicine than could be provided by old-fashioned Keynesianism.
Above: The UCMC (NUS Wales) Executive at the Autumn 1979 Conference
in Llandrindod Wells (the author is in the centre right).
In April 1979, just before the general election, I was elected ‘Cadeirydd’ (‘Chairholder’) of the National Union of Students in Wales (UCMC), working full-time from an office in Swansea. A month later, I began to wish I had declined the nomination, as an abyss seemed to open up below me. In the General Election, Wales located itself firmly within The South of Britain. At a time of heavy swings towards the Conservatives elsewhere, the heaviest swing of all, outside London, was in Wales. The Tory tide swept irresistibly through rural west Wales in particular. It was the real force which unseated the veteran Plaid Cymru President, Gwynfor Evans, in Carmarthen, to Labour’s benefit. The Tories took Brecon and Radnor, Montgomery and Anglesey, the last with a swing of twelve per cent. Apart from the three-way marginal of Carmarthen, Labour was driven back into the valleys of south Wales, though even there its massive majorities were significantly eaten into. Nevertheless, Labour remained by far the biggest party in Wales, with twenty-one seats out of thirty-six and forty-seven per cent of the votes. But the Conservatives, with eleven seats and thirty-two per cent, had reached a high point they had last held fifty years before. They swept through non-industrial Wales, obliterating political landmarks which had been familiar for generations. For Labour, there was a whiff of 1931 in the air and the elimination of Welsh peculiarities strongly suggested an integration into Britain more total than anything yet experienced.
One paradoxical effect of this abrupt reversal of two hundred years of history was the isolation of the Welsh intelligentsia from its people. In this generation, in sharp contrast to the last, creative writers in Welsh and in English started to draw together. Professor Gwyn Williams (above), my mentor at University College Cardiff, was one of those who articulated English-speaking Wales within national and international contexts, and his work was lauded equally widely. As younger Welsh writers began to move out of the kind of universe which the work of the Saunders Lewis school of Welsh-language writers, younger writers in English (‘sons of the miners’) started to adopt a more firmly nationalist position. In general, the younger Anglo-Welsh poets avoided the sort of polemic which assumed a Welsh national identity. As Tony Curtis wrote in 1986, there was no unquestionable Wales, rather they must work from the immediate context, the known. Emyr Humphries wrote of:
… the sense of disorientation prevailing among the majority who have been deprived of the language and the opportunity of inheriting the history and traditions that go with it.
John Ormond’s My Grandfather and his Apple-tree is the most successful of “character” poems. In concentrating on the life of one man the poet summarised the whole broad sweep of social change in South Wales from a predominantly rural economy to the accelerating expansion of industrial communities in the coal valleys that created a “Klondike” in Wales. John Ormond’s poem works effectively at several levels: as an historical poem; as a family remembrance it is an allegorical treatment of the life of a man as a social, economic and religious animal; the whole is a brilliantly sustained metaphor with a strong narrative structure. Ormond’s reputation by the time he was in his fifties in 1979 was notable, as was his influence on younger poets. One of these, Gillian Clarke, had first published in 1970, and by 1979 was established as a leading Welsh poet following the publication of her first full-length collection, The Sundial, which became the most successful book of poetry from a Welsh publisher. Living in suburban Cardiff, she was spiritually inhabiting a more rural, Welsh-speaking world to the west. In the seventies, the concern for voicing Welsh issues and proclaiming a specific Welsh identity provided a receptive ground for Gillian Clarke’s growth as a writer. In addition to poetry, major efforts went into drama and a whole range of arts; twin academies and a writers’ association came into being, and the Welsh Arts Council became more active. One of these miners’ sons, Dai Smith was critical of what he called …
… the production of Wales that was proceeding apace in the Cymricising suburbs of Cardiff, in academic and journalistic circles on the subsidised pages of a Welsh-language press and on the air-waves had no real need to take account of those who did not fit into the picture.
The votes of 1979 dramatically registered the end of the epoch of the ‘old’ Welsh intelligentsia. While the ideologies of technical, managerial and administrative leaders remained opaque and without any specific Welsh identity, the most visible and creative elders of educated opinion among the Welsh had been rejected by their people. The task of transmitting a fresh, iconoclastic reappraisal of Wales to the Welsh fell to historians like Gwyn A. Williams, Dai Smith, Kenneth O. Morgan and D. Hywel Davies, among others. I was fortunate enough to be an apprentice in this task, though more concerned, like my fellow-researcher William D. Jones, with the history of the Welsh outside Wales and their images of the home country. As Tony Curtis observed:
Wales is not what we assumed it to be . Simplistic assumptions of “national pride”, a self-regarding “national” identity, are not to be allowed to go unquestioned… In the contemporary context writers face a harder task than even those raised by the ferment of the language campaign and the Devolution Vote, issues which served to focus much recent writing and to justify its polemic.
Almost Immediately Wales was fully exposed to the Conservative crusade and the radically restructuring of an increasingly multinational capitalism in Britain. The Welsh working population reached a peak in 1979, when 1,002,000 people were at work, fifty-five per cent of them in the service sector and forty-two per cent of them women in the core industries. The run-down of the coal industry continued and was followed by a sharp reduction in steel. Between June 1980 and June 1982, the official working population fell by no fewer than 106,000. The most catastrophic losses were in steel which lost half its workers and plummeted to 38,000. Public administration, however, lost fewer, around three thousand, while a whole range of services in insurance, banking, entertainment and educational and medical services actually gained over four thousand workers. In consequence, more men than women lost jobs at first, particularly in 1980-81, though much women’s work was part-time. During 1982 unemployment was heavier among women, but the overall result, in terms of number, was by June 1983 to increase the proportion of women at work within the central areas of the economy to forty-five per cent. By that time, the official working population of Wales had fallen to 882,000, its lowest level in the century. There was a high level of unemployment and particularly serious was the wasting of a whole generation of young people.
The entire Welsh working population was beginning to take on the character of an informal, casual, unstructured labour force, an intimation of what was going to become a general experience in Britain to come. In the mid-1980s, Dai Smith commented that,
The crisis that would in the 1980s affect the vast majority of Welsh people was an economic, social and political crisis. … The ‘Condition of Wales Question’ is not for most of the Welsh about Welshness at all, it is about unemployment and jobs, about bad architecture, about bureaucracy and political participation, about dead-ends and opportunities. But nothing in Wales is subsidized more than ‘culture’.
The Wales TUC was weakened and losing both numbers and funds, seemingly incapable of responding to the crisis. In reality, its autonomy was strictly limited in any case. Out of an income of thirty-three thousand pounds in 1980, nearly twenty thousand was a grant from the British TUC. In that year, its affiliated membership totalled over 580,000, nearly sixty per cent of the working population. But the response to the evident transformation of the working population varied among the unions, with NUPE being the most rapid and adaptable. Overall, the organised workers’ movement seemed encased in a perception of a ‘working class’ which had become a myth. The People’s March for Jobs and other demonstrations were not as significant in Wales as elsewhere in Britain, despite being led by veteran miners’ leader, Will Paynter, for part of the way through south Wales. But in 1982, the South Wales NUM did force a dramatic U-turn from the Thatcher government over proposed regional pit closures. We celebrated, but also asked the question, Have the Miners Really Won? Another former miners’ leader, Dai Francis, had his doubts, which later turned out to be justified. Thatcher would be ready next time.
The student movement was in much the same position as the trade unions, though in 1980 NUS Wales succeeded in prizing greater resources out of NUS UK by its university unions paying directly into a Welsh affiliation fund, rather than sending the money direct to London. By the end of my year in office in August 1980, it had also established a more federal constitution, which helped to win back support from a number of disillusioned and disgruntled Welsh-speaking students in the North and West. The University of Wales had also accepted our proposal for a central board to coordinate the development of Welsh-medium teaching throughout all the university colleges, rather than simply concentrating it in Aberystwyth and Bangor. In other areas, we won support from HRH the Prince of Wales, as Chancellor of the University, for our concerns about the government’s introduction of full-cost fees for overseas students and confronted the Welsh Rugby Union over its support for the unofficial tour of the South African Barbarians. This South Wales Campaign Against Racism in Sport introduced Peter Hain to Wales.
UCMC also campaigned successfully to prevent the Labour-controlled local authorities from imposing projected cuts on part-time students. The rise of the Left within the Labour Party was matched by a leftward shift in Plaid Cymru, which wrote a socialist state into its programme for Wales and a ‘broad left’ was formed with the Welsh Labour left and former Communist Party members. In the student movement, a distinctively Welsh socialist group emerged out of the remnants of the old Broad Left, which had been replaced by the Left Alliance within NUS UK, now including the Union of Liberal Students. Socialist students in Wales decided that a better strategy to manufacturing alliances was to reclaim the university unions and develop unions in other colleges through socialist education and organisation at a more grass-roots level.
There seemed to be a limited response from a population readily accepting the values and arguments of ‘Thatcherism’ as they developed. The most radical political action went into the multiplying women’s groups, ecological movements and above all CND which acquired much more weight and spirit in the valleys and into west Wales than any other political body. On 23rd February 1982, all the Welsh local authorities came together to declare Wales a Nuclear Free Zone, refusing to distribute the government’s infamous Protect and Survive pamphlets. The historian and lifelong CND campaigner, E. P. Thompson came to Carmarthen later in the year to address a mass rally. The protest camp at Greenham Common missile base was started by a march of women from Cardiff.
The turmoil continued around the language issue. The census of 1981 revealed that the proportion of Welsh-speakers had slipped back to 18.9 per cent, but that the decline in the use of the language overall had slowed dramatically over the decade and seemed to be coming to a halt. There were marginal increases in the numbers of Welsh-speakers in the most English-speaking areas such as Gwent and Glamorgan, probably due to the migration of Welsh-speakers to fill new jobs in the media in the capital and the increase in the number of Welsh learners in those counties, particularly among students in the arts and young journalists. As one of the enumerators, I found people who declared themselves as Welsh-speakers in some of the most unlikely districts of Cardiff. Most serious, however, was the continued decline in the heartlands of the language, notably in south-west Wales, where the fall was six per cent. But the retrenchment in Welsh-speaking was noticeable in Ceredigion (Cardiganshire) and parts of Gwynedd and there were signs that the crusading of the past decade had begun to take effect among young people in these heartlands, especially where Welsh-medium or ‘bilingual’ schools had been set up.
Overall, out of a population of 2,790,00, around 550,000 were Welsh-speakers. In the west and north-west, particular districts, villages and even individual pubs created a linguistic map almost as tribally complicated as a cultural map of Northern Ireland. The continuing threat to the heartlands, y Fro Gymraeg, had led to the creation of a new cultural nationalist group, Adfer (‘Restore’), by the mid-seventies, whose intellectual supporters had been dedicated to the creation of a Welsh Gaeltacht, an ethnically pure economy and society on the basis of Welsh self-sufficiency. In Bangor, led by theology students, they had succeeded in creating a breakaway, Undeb Cymraeg (UCMB), a Welsh-speaking student union in 1977. The movement tended to see only the native Welsh-speaking Cymry as truly Welsh. The remainder, the vast majority throughout Wales, were described as Cymreig (‘culturally Welsh’) or at ‘best’, Cymry di-Gymraeg (‘non-Welsh-speaking Welsh’), the other face of the coin to the anti-Welsh-language British chauvinism which was prevalent in many Labour areas in the south, not least on the Left. Between the two groups of chauvinists, the proposal for a national assembly was easily defeated in the referendum of 1978, exposing Wales to economic pneumonia and the onset of Thatcherism, until its narrow reversal in the referendum of 1998.
In the early eighties, the divisions over the language were clear for all to see and were exacerbated by a major campaign of arson against holiday homes in northern and western Wales. In a major police action, Operation Tán (Fire) produced a chorus of complaint about violations of civil-rights, telephone-tapping, and the use of provocateurs. The NUS office phones were by now so routinely tapped that we could almost talk directly to Special Branch. On one occasion they contacted us directly to gather information about the beating up of Iraqi dissidents on the streets of South Wales by Saddam Hussein’s Baathist henchmen, the only students wearing suits and carrying rolled umbrellas! In the winter of 1980, driving out of Snowdonia following a meeting in Bangor, together with other members of the National Executive of NUS Wales, the North Wales Police stopped and searched the union’s fleet-hire hatch-back for flammable materials. They didn’t book us for speeding but joked about how wealthy Welsh students must be to be driving around in a brand-new car. They had obviously spotted the familiar dragons’ tongue Cymdeithas yr Iaith (Welsh Language Society) sticker in the back window.
Later in the year, John Jenkins, one of the bombers behind the botched attempt to blow a hole in the walls of Caernarfon Castle, in which two bombers accidentally blew themselves up and a little child was badly mutilated, before the 1969 Investiture of the Prince of Wales, was released from jail. Whilst there, where he had studied for an Open University degree. Having been initially accepted to study for a postgraduate diploma in social work, he was then rejected by University College Swansea without explanation. As our campaign to get the University to admit Jenkins gathered pace and hit the headlines, both in Welsh and English, both inside and outside Wales, we received a telephone message from ‘friends’ in high places in the university that Jenkins was still, somehow, a threat. That ‘somehow’ was never explained.
Our protests at the University of Wales Court meeting, held at Swansea, went ahead, but all the student representatives, ex-officio sabbatical officers of the constituent college unions, were forced to withdraw when the Jenkins case came up. As an NUS employee, I was initially allowed to stay in the meeting until the registrar of my own university college, Cardiff, pointed out that I was still registered as a student there. I was asked to withdraw, which meant we were prevented from reading our statement on the case, or even from having it read on our behalf by another Court member following my withdrawal. I, therefore, refused to leave, and the case was not discussed. Jenkins was not admitted, and we never found out what ‘good reason’ the college had for rejecting his application. Soon after I received a message from my own university college, Cardiff, that I would not be allowed to extend my sabbatical at the Swansea NUS HQ for a further year and remain as a registered student, which would mean I had to leave the university permanently. I dutifully obeyed and returned to my PhD research in Cardiff in September 1980. Julie Barton was elected to replace me, becoming the first woman President of a more autonomous UCMC (NUS Wales), holding the post until 1982.
By then, the growth of the academic study of modern Welsh history became a major intellectual force which helped to bridge some of these divisions. The journal Llafur (Labour), the organ of the Welsh Labour History Society, of which I was a member, successfully married academics and workers. I returned to Swansea in the autumn of 1980, to do some research into the history of the mining valleys in the 1930s at the South Wales Miners’ Library, set up by the South Wales NUM in co-operation with University College Swansea, managed by Hywel Francis, son of the former miners’ leader. It had rescued what was left of the magnificent miners’ institute libraries and created a centre for adult education, active research and a memorial to the fallen of the Spanish Civil War, many of those who joined the International Brigade having been South Wales miners. Soon after, however, the University College was forced into making financial cuts and proposed to lop off the Miners’ Library. In an effort to save it, the miners themselves became the major protagonists.
By 1982, Wales had its own Welsh-medium fourth television channel, a Welsh-medium teaching Board within the still federal University of Wales, and a quasi-official, ubiquitous bilingualism in public life. ‘Superted’ had been launched into orbit from S4C’s new offices in Canton, Cardiff. However, the task still remained of voicing the concerns of the eighty per cent who were outside the ‘orbit’ of the language and who, for a complexity of reasons, had turned their backs on the chance of Devolution, but still felt a deep sense of being “Welsh”.
The Grocer’s Daughter:
Looking back from over thirty-five years later, the epic events of 1979-83 seem to have a clear pattern. Powerful ideas challenged the post-war consensus and, following a nail-biting struggle, defeated its adherents. But from the perspective of those who lived through these events, especially in traditionally ‘left-wing’ areas of Britain, there was remotely inevitable about this ‘victory’. As student leaders, for example, we really thought that we could defeat the Tories on the issue of full-cost fees for overseas students. Even HRH the Prince of Wales, following our Lampeter meeting with him in 1980, expressed his concerns in one of his now famous hand-written missives to the government about the likely effects of these being introduced on Britain’s relations with the Commonwealth and on Britain’s new technical universities, which were dependent on the recruitment of overseas students. Almost the entire University Sector in Britain and its overseas offshoots, was publicly against the government on this, though many vice-chancellors were secretly rubbing its hands with the prospect of attracting more oil-rich Saudis and Baathists from Iraq and Syria, rather than poor South American, African and Middle-Eastern ‘refugees’.
It was also unclear what sort of Britain Margaret Roberts, the grocer’s daughter and devout Lincolnshire Christian, hoped to create. She did not believe in privatising industries or defeating inflation merely for economic reasons. She wanted to remoralize society, creating a nation whose ‘Victorian Values’ were expressed through secure marriages, like her own, self-help and thrift, moderation in all things, good neighbourliness and hard work. Though much attacked by church leaders like her arch nemesis, David Jenkins, the Bishop of Durham, she talked of God and morality incessantly from the moment she apparently quoted Francis of Assisi at the door of Number Ten on the morning following her May 1979 Election victory. In fact, it was a Victorian re-working of the well-known prayer. Later, it was endlessly used to show what a hypocrite she was. But for the people she had determined to govern on behalf of, the inflation-ravaged middle-classes who had despaired of Britain’s future, believing that the unions could never be tamed by the State, she brought both faith and hope. She claimed that she was in politics because of the conflict between good and evil. Yet Thatcherism heralded an age of unparalleled consumption, credit, show-off wealth, quick bucks and sexual libertinism. The Thatcher years did not bring harmony to the lives of most of the Queen’s subjects, but further social and economic division. When politicians determine to free people, they can never be sure what they are freeing them for. In reality, the lady in Lincoln green turned out to be the antithetical mirror image of its legendary hero, like the Robin Hood character in Monty Python and the Holy Grail:
Steals from the poor, gives to the rich,
Silly bitch!
Perhaps, as a Wesleyan, she had too generous a view of human nature, especially (and ironically) contrasted with her Calvinistic Baptist predecessor, who believed that people are essentially selfish and need to be moderated and regulated by the state for the common good to prevail. John Wesley’s famous mantra was: Work all you can, earn all you can, give all you can. Unfortunately, it took most of her period in power for her and the country to realise her theological error, that the sin of omission lay in respect of the third part of this triplet, and by that time much of Britain’s wealth and many of its assets had been stripped and shipped abroad. For the first four years of her leadership, the Tories were continuing to talk about a wages policy and the importance of consulting with the trade unions, perhaps on the German model. There was also talk of the need to control the money supply and offer council tenants the right to buy their homes. But other privatization measures barely featured. As to unemployment, Mrs Thatcher herself had been vigorously attacking the Callaghan government for its failure to tackle the dole queues. One of the Tories’ most successful election posters had portrayed an ever-lengthening queue with the slogan Labour isn’t working. I remember seeing it on an Easter visit home, dominating Chamberlain Square in Birmingham. With unemployment still around a million, the message she was giving out while still in opposition was:
We would have been drummed out of office if we’d had this level of unemployment.
If the British public had studied their new Prime Minister a little more closely they would have noticed a more abrasive edge to her personality, especially when she talked of the failure of the three previous administrations, including that of Ted Heath, to control the trade unions. She would point aggressively across the House of Commons and declare, Never forget how near this country came to government by picket. She had also received the nickname, The Iron Lady as an insult from the Soviet leadership for her rabidly anti-communist speech in 1977. It was only much later that it became a badge of honour for her. Moreover, the cabinet full of Tory squires and former Heath supporters hardly looked like a revolutionary cabal. Denis Healy memorably compared being attacked by the Chancellor, Geoffrey Howe, to being savaged by a dead sheep. But Mrs Thatcher herself was a far more determined woman than most people realised. The single most important influence throughout her life seems to have come from her father, Alderman Alfred Roberts, a self-made, austere Methodist and hard-working owner of a grocer’s shop on the main road north at Grantham. Although he stood for the council as an independent, Roberts was of Tory instincts. He became mayor in 1945 and chaired local charities, the Workers’ Educational Association, and acted as a director of a local bank. He was independent-minded and taught his daughter to speak her mind and to argue. In this, he was extremely successful, since her governments effectively devastated everything he had stood for in terms of local politics.
Unlike Wilson, who used his Yorkshire accent as a badge of identity, she lost her Lincolnshire ‘burr’ somewhere on her way down the A1. As her biographer, Hugo Young put it, she was born a northerner but became a southerner, the quintessence of a Home Counties politician. She was elected for the well-off middle-class seat of Finchley in 1959, her politics having been formed by the experience of post-war Labour austerity. Seen from above, the socialist experiment in planning and ‘fair shares for all’ might have looked noble, she concluded, but from below it was a maze of deprivation, shortage and envy. She later reflected that…
No one who lived through austerity, who can remember snoek, spam and utility clothing, could mistake the petty jealousies, minor tyrannies, ill-neighbourliness and sheer sourness of those years for idealism and equality.
During the 1979 election, using all the skills of her new image-makers and advertising agency, and with a shrewd understanding of the importance of television, she was still trailing Callaghan in the personal popularity stakes by a full nineteen points. It was Labour’s unpopularity with the electorate which cost the party power, not Margaret Thatcher’s allure. Yet without her, the Tory government of 1979-83 would have been entirely different. Without her confrontational style and determination not to be beaten, Britain would have been stuck with a pay policy and high public spending. The crucial issue for her on being elected was to get a grip of inflation. To the Thatcherites, this meant monetarism, the basic proposition of which was that inflation is directly related to the amount of money in the economy. Where the Thatcherite monetarists diverged from Keynesian economics was in the argument that the paramount role of government in economic management was to control the money supply, which could be scientifically measured and calibrated. The other issues, unemployment and productivity included, would eventually resolve themselves. All the government needed to do was to hold firm to the principle, get the money supply down, and it would succeed.
The Thatcher government, in reality, could have restricted the money supply by raising taxes, but it was committed to cutting most taxes. Almost immediately, Howe cut the basic rate of income tax from thirty-three to thirty per cent and the top rate from eighty-three to sixty per cent. Spending cuts were agreed too, but to make up the difference a huge rise in value-added tax (VAT), doubling to fifteen per cent, was brought in. Money was being redistributed from the masses, paying more for food, clothes and other essential items, to higher rate taxpayers. In industrial policy, one of the ‘moderates’, Jim Prior, made good on the manifesto promise and unveiled a trade union reform bill designed to end closed shops, providing public funds for strike ballots and outlawing secondary picketing of the kind which had been widely seen during ‘the winter of discontent’. These measures would have been radical under any other government, but Thatcher complained that they did not go far enough. She wanted an end to all secondary action. She castigated him as a ‘false squire’, one of a class of Tories who…
… have all the outward show of a John Bull – ruddy face, white hair, bluff manner – but inwardly they are political calculators who see the task of Conservatives as retreating gracefully before the Left’s inevitable advance.
In frustration, Thatcher suddenly announced that strikers would in future be assumed to be getting union strike pay and so would not qualify for social security. The battle lines were being clearly drawn.
Howe’s second budget in 1980 set out a Medium-Term Financial Strategy (MTFS) which contained detailed predictions about the growth of the money supply. But with inflation raging, a recession biting and credit restrictions loosened, it was impossible to enforce. The money supply was supposed to be growing at around eight per cent, but it actually grew at a rate of nineteen per cent. The monetarists were beginning to look foolish. Strike-ravaged, unproductive British Leyland came begging for yet more money but instead of closing it down or selling it off, Thatcher gave way, just as Heath had done when Rolls-Royce had tested his resolve not to give bail-outs. But whereas the latter had eventually thrived again, BL died. There was also a steel strike and though the government talked tough and stood firm, the eventual settlement was high and the unions were certainly not humiliated. By the second half of the year, unemployment was up by more than 800,000 and hundreds of manufacturing businesses were going bust, throttled by the rising exchange rate. Industrialists, who had looked to the Tories with great hope, now began to despair once more. Prices were up by twenty-two per cent in a year and wages by a fifth. At the Tory Conference of 1980, the dissidents within the cabinet and the Tory ‘left’ in Parliament who called for a ‘U-turn’ on the economy were dismissed by Thatcher in a phrase coined by the playwright Ronald Millar:
You turn if you want to. The lady’s not for turning!
The word ‘wet’ was a public schoolboy term of abuse describing a fellow pupil who was ‘soppy’ or weak. It was now being applied by monetarist Tories to their Heathite opponents. In the great Thatcher cabinet battles of the eighties, it was appropriated to refer particularly to the senior ministers who did not agree with her – Jim Prior, Francis Pym, Sir Ian Gilmour, Mark Carlisle, Norman St John Stevas, Peter Walker, Christopher Soames and (later) Michael Heseltine. Most of them were ‘wet’ in another sense – despite being in the majority, they were never prepared to act together to face her down, or even to resign individually on points of principle. The great confrontation would have come in 1981, with unemployment headed towards three million, new bankruptcies reported every day and the biggest collapse in manufacturing production in a single year since 1921. Howe planned to take another four billion out of the economy through a combination of swingeing cuts and rises in taxes. Thatcher told Alan Walters, her new economic adviser, that they may get rid of me for this but that it would be worth it for doing the right thing. On the streets, rioting seemed to be confirming all the worst fears of those who had predicted that monetarism would tear the country apart. But in ringing terms, Thatcher told the Tory Party faithful to stay calm and strong:
This is the road I am resolved to follow. This is the path I must go. I ask all who have spirit – the bold, the steadfast and the young at heart – to stand and join with me.
In April 1981, riots broke out in Brixton. Shops were burned and looted, streets barricaded and more than two hundred people, most of them police, were injured. Mrs Thatcher’s response was to pity the shopkeepers. Lord Scaman was asked to hold a public inquiry; but in the first week of July, trouble began again, this time in the heavily Asian west London suburb of Southall, with petrol-bombs, arson attacks and widespread pelting of the police. Then Toxteth in Liverpool erupted and the rioting there continued for two weeks. Black youths, then whites, petrol-bombed the police, waved guns and burned both cars and buildings. The police responded with CS gas, the first time it had been used on the streets of mainland Britain, and with baton charges. As in London, hundreds were injured and one man was killed. Toxteth was followed by outbreaks of looting and arson in Manchester’s Moss Side. With unemployment reaching sixty per cent among young blacks, and both Liverpool and Manchester having suffered badly from recent factory closures, many saw this a clearly linked to Thatcherite economics, what Denis Healey, now in opposition, was now calling ‘sado-monetarism’. Michael Heseltine went to Liverpool and came back calling for government money to bring in private investment, job creation schemes and a minister for Liverpool. He stuck with Liverpool for a year, helping to bring renovation projects and a morale-boosting garden festival which was attended by three million people. Thatcher herself drew very different conclusions from her visit to Liverpool:
I had been told that some of the young people involved got into trouble through boredom and not having enough to do. But you only had to look at the grounds of these houses with the grass untended, some of it almost waist-high, and the litter, to see this was a false analysis. They had plenty of constructive things to do if they wanted. Instead, I asked myself how people could live in such circumstances without trying to clear up the mess.
The problem, she claimed, was lack of initiative and self-reliance created by years of dependency on the State, and compounded by the media. It was nothing whatsoever to do with monetarist policies. Her views remained unaltered as she then went on into full-scale battle with ‘the wets’. Howe planned another tight Budget for 1982, and, for the first time, there was something approximating a full-scale cabinet revolt. Heseltine warned of despair and electoral meltdown. Even monetarist true believers seemed to be deserting. Thatcher herself called it one of the bitterest arguments in a cabinet in her time. Drawing the meeting to a close, she decided to counter-attack. Four ministers were sacked, and Jim Prior was sent to Northern Ireland. She intervened to stop other ministers settling with public sector workers, even when it would have been cheaper to do so. She had kept the trade union leaders locked out. Len Murray (above), the impeccably moderate TUC chairman who had spent half the Wilson and Callaghan years sitting around the table with them, was allowed into Downing Street just three times in Mrs Thatcher’s first five years.
In the summer of 1981, most of ‘England and Wales’ allowed itself to be distracted by the dramatic reversal in their Cricket team’s fortunes in the Home ‘Ashes’ series against Australia. A belligerent Ian Botham helped them to snatch victory from the jaws of defeat at Headingley, and we all began picking up bats and balls again. In 1982, I enjoyed a brief interlude as ‘the Ian Botham of Grangetown’ in my pub team, more for my inconsistency as an all-rounder, though I did get to make match-winning contributions on the practice pitches at Sophia Gardens.
Above: In an interview with BBC correspondent, John Simpson
Andrew James 
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