The Advent of Brown & Blair:

Tony Blair was far more of an establishment figure than his mentor John Smith, or his great political ‘friend’ and future rival, Gordon Brown. He was the son of a Tory lawyer and went to preparatory school in Durham and then to a fee-paying boarding school in Edinburgh. He then went ‘up’ to Oxford, becoming a barrister and joining the Labour Party before he fell in love with a young Liverpudlian socialist called Cherie Booth, who sharpened his left-wing credentials before he became an MP at the 1983 General Election, winning a safe Labour seat in the north-east of England. Once in the Commons, he quickly fell in with Gordon Brown, another new MP, who was much that Blair was not. He was a tribal Labour Party man from a family which was strongly political and had rarely glimpsed the English Establishment, even its middle ranks from which Blair sprung. Brown had been Scotland’s best-known student politician and player in Scottish Labour politics from the age of twenty-three, followed by a stint in television. Yet the two men had their Christian beliefs in common, Anglo-Catholic in Blair’s case and Presbyterian in Brown’s. Most importantly, they were both deeply impatient with the state of the Labour Party. For seven or eight years they had seemed inseparable, sharing a small office together. Brown tutored Blair in some of the darker arts of politics while Blair explained the thinking of the English metropolitan and suburban middle classes to Brown. Together they made friends with Westminster journalists, both maturing as performers in the Commons, and together they worked their way up the ranks of the shadow cabinet.

After the 1992 defeat, Blair made a bleak public judgement about why Labour had lost so badly. The reason was simple: Labour has not been trusted to fulfil the aspirations of the majority of people in a modern world. As shadow home secretary he began to put that right, promising to be tough on crime and tough on the causes of crime. He was determined to return his party to the common-sense values of Christian Socialism, also influenced by the mixture of socially conservative and economically liberal messages used by Bill Clinton and his ‘New Democrats’. So too was Gordon Brown but as shadow chancellor, his job was to demolish the cherished spending plans of his colleagues. Also, his support for the ERM made him ineffective when Major and Lamont suffered their great defeat. By 1994, the Brown-Blair relationship was less strong than it had been, but they visited the States together to learn the new political style of the Democrats which, to the advantage of Blair, relied heavily on charismatic leadership. Back home, Blair pushed Smith to reform the party rulebook, falling out badly with him in the process. Media commentators began to tip Blair as the next leader, and slowly but surely, the Brown-Blair relationship was turning into a Blair-Brown one.

In the days following the sudden death of the Labour leader, John Smith (pictured right), Tony Blair decided almost immediately to run as his replacement, while Gordon Brown hesitated, perhaps more grief-stricken. But he had assumed he would eventually inherit the leadership, and was aghast when he heard of Blair’s early declaration. There were at least ten face-to-face confrontations between the two men, in London and Edinburgh. In the opinion polls, Blair was shown to be more popular, and he had the backing of more MPs as well as that of the press. Crucial to Blair’s case was his use of received pronunciation which, after Neil Kinnock and John Smith’s heavily accented English, would reassure those more prejudiced parts of the Kingdom which were the main battlegrounds for Labour, and in which Celtic tones were not perhaps as appreciated as they might be nowadays. They were alright when heard from actors and BBC presenters, but they made politicians seem more ‘peripheral’. Brown had a deeper knowledge of the Labour movement and broader support among the trade unions, however, and had also thought through his policy agenda for change in greater detail. Given the vagaries of Labour’s electoral college system, it is impossible to judge, even now, what might have happened had the ‘young English hart’ locked horns with the ‘tough Scottish stag’, but they agreed at the time that it would be disastrous for them to fight each other as two ‘modernisers’ since Brown would have to attack Blair from the left and the unions would then demand their tribute from him if he won.

So the two men came to a deal, culminating in a dinner at a ‘chic’ Islington restaurant. The outcome is still a matter of some dispute, but we know that Blair acknowledged that Brown, as Chancellor in a Labour government, would have complete authority over a wide range of policy which he would direct through the Treasury, including the ‘social justice’ agenda. But it is unlikely that he would have been so arrogant as to agree, as some have suggested, that he would hand over the premiership to Brown after seven years. After all, at that time Labour was already still three years away from winning its first term and not even the sharpest crystal ball could have projected the second term at that juncture. The most significant result of their dinner-table deal was that, following all the battles between Tory premiers and chancellors of the then recent and current Conservative governments, Brown’s Treasury would become a bastion for British home affairs, while Blair was left to concentrate on foreign policy largely unimpeded, with all the tragic consequences with which we are now familiar, with the benefit of the hindsight of the last twenty years.

Team Tony & ‘Blair’s Babes’:

When it arrived, the 1997 General Election demonstrated just what a stunningly efficient and effective election-winning team Tony Blair led, comprising those deadly masters of spin, Alistair Campbell and Peter Mandelson. ‘New Labour’ as it was now officially known, won 419 seats, the largest number ever for the party and comparable only with the seats won by the National Government of 1935. Its Commons majority was also a modern record, 179 seats, and thirty-three more than Attlee’s landslide majority of 1945. The swing of ten per cent from the Conservatives was another post-war record, roughly double that which the 1979 Thatcher victory had produced in the opposite direction. But the turn-out was very low, at seventy-one per cent the lowest since 1935. Labour had won a famous victory but nothing like as many actual votes as John Major had won five years earlier. But Blair’s party also won heavily across the south and in London, in parts of Britain where it had previously been unable to reach or represent in recent times.

As the sun came up on a jubilant, celebrating Labour Party returning to power after an eighteen-year absence, there was a great deal of Bohemian rhapsodizing about a new dawn for Britain. Alistair Campbell had assembled crowds of party workers and supporters to stand along Downing Street waving union flags as the Blairs strode up to claim their victory spoils. Briefly, at least, it appeared that the whole country had turned out to cheer the champions. In deepest, Lib-Con ‘marginal’ Somerset, many of us had been up all night, secretly sipping our Cava in front of the incredible scenes unfolding before our disbelieving eyes, and when the results came in from Basildon and Birmingham Edgbaston (my first constituency at the age of eighteen when it had already been a safe seat for Tory matron Jill Knight for at least a decade), we were sure that this would indeed be a landslide victory, even if we had had to vote for the Liberal Democrats in the West Country just to make sure that there was no way back for the Tories. The victory was due to a small group of self-styled modernisers who had seized the Labour Party and made it a party of the ‘left and centre-left’, at least for the time being, though by the end of the following thirteen years, and after two more elections, they had taken it further to the right than anyone expected on that balmy early summer morning; there was no room for cynicism amid all the euphoria. Labour was rejuvenated, and that was all that mattered.

A record number of women were elected to Parliament, 119, of whom 101 were Labour MPs, the so-called ‘Blair’s babes’. Despite becoming one of the first countries in the world to have a female prime minister, in 1987 there were just 6.3% of women MPs in government in the UK, compared with 10% in Germany and about a third in Norway and Sweden. Only France came below the UK with 5.7%.

Before the large group of women MPs joined her in 1997, Margaret Hodge (pictured below, c.1992, and right, in c. 2015) had already become MP for Barking in a 1994 by-election, following the death of Labour MP Jo Richardson. While still a new MP, Hodge endorsed the candidature of Tony Blair, a former Islington neighbour, for the Labour Party leadership, and was appointed Junior Minister for Disabled People in 1998. Before entering the Commons, she had been Leader of Islington Council and had not been short of invitations from constituencies to stand in the 1992 General Election. Given that she is now referred to as a ‘veteran MP’ it is therefore interesting to note that she had turned these offers down, citing her family commitments:

“It’s been a hard decision; the next logical step is from local to national politics and I would love to be part of a Labour government influencing change. But it’s simply inconsistent with family life, and I have four children who mean a lot to me. 

“It does make me angry that the only way up the political ladder is to work at it twenty-four hours a day, seven days a week. That’s not just inappropriate for a woman who has to look after children or relatives, it’s inappropriate for any normal person.

“The way Parliament functions doesn’t attract me very much. MPs can seem terribly self-obsessed, more interested in their latest media appearance than in creating change.” 

Patricia Hewitt (pictured above, in 1992, and more recently, right) had first begun looking for a seat in the 1970s when she was general secretary of the National Council of Civil Liberties (NCCL). She later commented that… looking for a seat takes an enormous amount of time, and money, too if you’re travelling a lot. Eventually, she was chosen to fight Leicester East in 1983, a contest which she lost by only nine hundred votes to the Conservative in what was then a relatively safe Tory seat. She later recalled driving up to Leicester on two evenings every week:

“I was planning to have a child after the elections – looking back I don’t know I imagined I was going to cope if Labour had won the seat… Even without children, I was leading such a pressured life – and my partner was doing the same as a Labour councillor – that it did put a strain on our relationship.”

She then became Neil Kinnock’s press and broadcasting secretary. In this role, she was a key player in the first stages of the ‘modernisation’ of the Labour Party, and along with Clive Hollick, helped set up the Institute for Public Policy Research and was its deputy director 1989–1994. By the time of the 1992 General Election she had two small children, so she decided not to look for a seat. Following Labour’s defeat in 1992, Hewitt was asked by the new Labour Leader, John Smith, to help establish the Commission on Social Justice, of which she became deputy chair. She then became head of research with Andersen Consulting, remaining in the post during the period 1994–1997. Hewitt was finally elected to Parliament to the House of Commons as the first female MP for Leicester West at the 1997 General Election, following the retirement of Greville Janner. She was elected with a majority of 12,864 and remained the constituency MP until stepping down in 2010.

Mary Kaldor (pictured right in the 1980s, and below in 2000), by contrast, never became an MP, one of the ‘loves’ Labour lost. A British academic, currently Professor of Global Governance at the London School of Economics, where she is also the Director of the Civil Society and Human Security Research Unit, she was the daughter of the economist Nicholas Kaldor, an exiled Hungarian economist who became an adviser to Harold Wilson in the 1960s. In the nineties, she was a senior research fellow at the Science Policy Research Unit of Sussex, and former foreign policy adviser to the Labour Party. She was shortlisted for Hackney and Dulwich in 1981, attending masses of meetings, many of which were boring at which she was endlessly having to be nice to people. Her youngest child was two years old at the time and was therefore ambivalent about the idea of becoming an MP:

“I was very well-equipped with baby minders and a nice understanding husband, but what on earth is the point of having children if you’re not going to see them?

“Building links with eastern Europe through the peace movement was more exciting than anything I could ever have done as an MP … (which seemed) entirely about competitiveness and being in the limelight, giving you no time to think honestly about your political views.”

In 1999, Kaldor supported international military intervention over Kosovo on humanitarian grounds, calling for NATO ground forces to follow aerial bombardment in an article for The Guardian. I have written about the war in Kosovo in a separate article in this series. Significantly, however, by the end of the next decade Kaldor lost faith in the principle and practice of humanitarian intervention, telling the same paper:

The international community makes a terrible mess wherever it goes…

It is hard to find a single example of humanitarian intervention during the 1990s that can be unequivocally declared a success. Especially after Kosovo, the debate about whether human rights can be enforced through military means is ever more intense.

Moreover, the wars in Afghanistan and Iraq, which have been justified in humanitarian terms, have further called into question the case for intervention.

Blair needed the support and encouragement of admirers and friends who would coax and goad him. There was Mandelson, the brilliant but temperamental former media boss, who had now become an MP. Although adored by Blair, he was so mistrusted by other members of the team that Blair’s inner circle gave him the codename ‘Bobby’ (as in Bobby Kennedy). Alistair Campbell, Blair’s press officer and attack-dog is pictured above, in a characteristic ‘pose’. A former journalist and natural propagandist, he had helped orchestrate the campaign of mockery against Major. Then there was Anji Hunter, the contralto charmer who had known Blair as a young rock-singer and was his best hotline to middle England. Derry Irvine was a brilliant Highlands lawyer who had first found a place in his chambers for Blair and Booth. He advised on constitutional change and became Lord Chancellor in due course. These people, with the Brown team working in parallel, formed the inner core. The young David Miliband, son of a well-known Marxist philosopher, provided research support. Among the MPs who were initially close were Marjorie ‘Mo’ Mowlem and Jack Straw, but the most striking aspect about ‘Tony’s team’ was how few elected politicians it included.

The small group of people who put together the New Labour ‘project’ wanted to find a way of governing which helped the worse off, particularly by giving them better chances in education and to find jobs, while not alienating the mass of middle-class voters. They were extraordinarily worried by the press and media, bruised by what had happened to Kinnock, whom they had all worked with, and ruthlessly focused on winning over anyone who could be won. But they were ignorant of what governing would be like. They were able to take power at a golden moment when it would have been possible to fulfil all the pledges they had made. Blair had the wind at his back as the Conservatives would pose no serious threat to him for many years to come. Far from inheriting a weak or crisis-ridden economy, he was actually taking over at the best possible time when the country was recovering strongly but had not yet quite noticed that this was the case. Blair had won by being ruthless, and never forgot it, but he also seemed not to realise quite what an opportunity ‘providence’ had handed him.

Cool Britannia and the Celebrity Princess:

Above: a page from a recent school text.

Tony Blair arrived in power in a country with a revived fashion for celebrity, offering a few politicians new opportunities but at a high cost. It was not until 1988 that the full shape of modern celebrity culture had become apparent. That year had seen the publication of the truly modern glossy glamour magazines when Hello! was launched. Its successful formula was soon copied by OK! from 1993 and many other magazines soon followed suit, to the point where the yards of coloured ‘glossies’ filled the newsagents’ shelves in every town and village in the country. Celebrities were paid handsomely for being interviewed and photographed in return for coverage which was always fawningly respectful and never hostile. The rich and famous, no matter how flawed in real life, were able to shun the mean-minded sniping of the ‘gutter press’, the tabloid newspapers. In the real world, the sunny, airbrushed world of Hello! was inevitably followed by divorces, drunken rows, accidents and ordinary scandals. But people were happy to read good news about these beautiful people even if they knew that there was more to their personalities and relationships than met the eye. In the same year that Hello! went into publication, ITV also launched its the most successful of the daytime television shows, This Morning, hosted from Liverpool by Richard Madeley and Judy Finnigan, providing television’s celebrity breakthrough moment.

This celebrity fantasy world, which continued to open up in all directions throughout the nineties, served to re-emphasise to alert politicians, broadcasting executives and advertisers the considerable power of optimism. The mainstream media in the nineties was giving the British an unending stream of bleakness and disaster, so millions tuned in and turned over to celebrity. That they did so in huge numbers did not mean that they thought that celebrities had universally happy lives. And in the eighties and nineties, no celebrity gleamed more brightly than the beautiful yet troubled Princess Diana. For fifteen years she was an ever-present presence: as an aristocratic girl, whose childhood had been blighted by her parents’ divorce, her fairytale marriage in 1981 found her pledging her life to a much older man who shared few of her interests and did not even seem to be truly in love with her. Just as the monarchy had gained from its marriages, especially the filmed-for-television romance, engagement and wedding of Charles and Diana, the latter attracting a worldwide audience of at least eight hundred million, so it lost commensurately from the failure of those unions.

Above: Hello! looks back on the 1981 Royal Wedding from that of 2011.

Diana quickly learned how to work the crowds and to seduce the cameras like Marilyn Monroe. By the end of the eighties, she had become a living fashion icon. Her eating disorder, bulimia, was one suffered by a growing number of young women and teenage girls from less privileged homes. When AIDS was in the news, she hugged its victims to show that it was safe, and she went on to campaign for a ban on the use of land-mines. The slow disintegration of this marriage transfixed Britain, as Diana moved from a china-doll debutante to painfully thin young mother, to an increasingly charismatic and confident public figure, surprising her husband who had always assumed she would be in his shadow. After the birth of their second son Harry in 1987, Charles and Diana’s marriage was visibly failing.

When rumours spread of her affairs, they no longer had the moral impact that they might have had in previous decades. By the nineties, Britain was now a divorce-prone country, in which ‘what’s best for the kids’ and ‘I deserve to be happy’ were phrases which were regularly heard in suburban kitchen-diners. Diana was not simply a pretty woman married to a king-in-waiting but someone people felt, largely erroneously, would understand them. There was an obsessive aspect to the admiration of her, something that the Royal Family had not seen before, and its leading members found it very uncomfortable and even, at times, alarming. They were being challenged as living symbols of Britain’s ‘family values’ and found wanting, just as John Major’s government would also be hoisted by its own petard as its ‘Back to Basics’ campaign was overwhelmed by an avalanche of sexual and financial scandals.

By the mid-1990s, the monarchy was looking shaky, perhaps even mortal. The strain of being at once a ceremonial and a familial institution was proving a bit much. The year 1992, referred to as the Queen as her ‘annus horribilis’ in her Christmas speech, first saw the separation of the other royal couple, Andrew and Sarah, followed by a major fire at Windsor Castle in November. The journalist Andrew Morton claimed to tell Diana’s True Story in a book which described suicide attempts, blazing rows, her bulimia and her growing certainty that Prince Charles had resumed an affair with his old love Camilla Parker-Bowles, something he later confirmed in a television interview with Jonathan Dimbleby. In December, John Major announced the separation of Charles and Diana to the House of Commons. There was a further blow to the Royal Family’s prestige in 1994 when the royal yacht Britannia, the floating emblem of the monarch’s global presence, was decommissioned.

 Above: Prince William with his mother, c. 1994.

Then came the revelatory 1995 interview on BBC TV’s Panorama programme between Diana and Martin Bashir. Breaking every taboo left in Royal circles, she freely discussed the breakup of her marriage, claiming that there were ‘three of us’ in it, attacked the Windsors for their cruelty and promised to be ‘a queen of people’s hearts’. Finally divorced in 1996, she continued her charity work around the world and began a relationship with Dodi al-Fayed, the son of the owner of Harrods, Mohammed al-Fayed. To many in the establishment, she was a selfish, unhinged woman who was endangering the monarchy. To many millions more, however, she was more valuable than the formal monarchy, her readiness to share her pain in public making her even more fashionable. She was followed all around the world, her face and name selling many papers and magazines. By the late summer of 1997, Britain had two super-celebrities, Tony Blair and Princess Diana.

It was therefore grimly fitting that Tony Blair’s most resonant words as Prime Minister which brought him to the height of his popularity came on the morning when Diana was killed in a car-crash, together with Dodi, in a Paris underpass. Blair was woken from a deep sleep at his constituency home, first to be told about the accident, and then to be told that Diana had died. Deeply shocked and worried about what his proper role should be, Blair spoke first to Campbell and then to the Queen, who told him that neither she nor any other senior member of the Royal Family would be making a statement. He decided, therefore, that he had to say something. Later that Sunday morning, standing in front of his local parish church, he spoke words which were transmitted live around the world:

“I feel, like everyone else in this country today, utterly devastated. Our thoughts and prayers are with Princess Diana’s family, in particular her two sons, her two boys – our hearts go out to them. We are today a nation in a state of shock…

“Her own life was often sadly touched the lives of so many others in Britain and throughout the world with joy and with comfort. How many times shall we remember her in how many different ways, with the sick, the dying, with children, with the needy? With just a look or a gesture that spoke so much more than words, she would reveal to all of us the depth of her compassion and her humanity.

“People everywhere, not just here in Britain, kept faith with Princess Diana. They liked her, they loved her, they regarded her as one of the people. She was – the People’s Princess and that is how she will stay, how she will remain in our hearts and our memories for ever.”

Although these words seem, more than twenty years on, to be reminiscent of past tributes paid to religious leaders, at the time they were much welcomed and assented to. They were the sentiments of one natural charismatic public figure to another. Blair regarded himself as the people’s Prime Minister, leading the people’s party, beyond left and right, beyond faction or ideology, with a direct line to the people’s instincts. After his impromptu eulogy, his approval rating rose to over ninety per cent, a figure not normally witnessed in democracies. Blair and Campbell then paid their greatest service to the ancient institution of the monarchy itself. The Queen, still angry and upset about Diana’s conduct and concerned for the welfare of her grandchildren, wanted a quiet funeral and to remain at Balmoral, away from the scenes of public mourning in London. However, this was potentially disastrous for her public image. There was a strange mood in the country deriving from Diana’s charisma, which Blair had referenced in his words at Trimdon. If those words had seemed to suggest that Diana was a saint, a sub-religious hysteria responded to the thought. People queued to sign a book of condolence at St James’ Palace, rather than signing it online on the website of the Prince of Wales. Those queuing even reported supernatural appearances of the dead Princess’ image. By contrast, the lack of any act of public mourning by the Windsors and the suggestion of a quiet funeral seemed to confirm Diana’s television criticisms of the Royal Family as being cold if not cruel towards her.

In particular, the Queen was criticised for following protocol, which prohibited the flying of flags at Buckingham Palace when she was not in residence, rather than fulfilling the deep need of a grief-stricken public to see the Union flag flying there at half-mast. According to another protocol, flags were only flown at half-mast on the deaths of the monarch or their immediate blood relatives. But the crown lives or dies by such symbolic moments, and the Queen relented. Also, with Prince Charles’ full agreement, Blair and his aides put pressure on the Palace first into accepting that there would have to be a huge public funeral so that the public could express their grief, and second into accepting that the Queen should return to London. She did, just in time to quieten the genuine and growing anger about her perceived attitude towards Diana. This was a generational problem as well as a class one. The Queen had been brought up in a land of buttoned lips, stoicism and private grieving. She now reigned over a country which expected and almost required exhibitionism. For some years, the deaths of children, or the scenes of fatal accidents had been marked by little shrines of cellophane-wrapped flowers, soft toys and cards. In the run-up to Diana’s funeral parts of central London seemed almost Mediterranean in their public grieving. There were vast mounds of flowers, people sleeping out, holding up placards and weeping in the streets, strangers hugging each other.

The immense outpouring of public emotion in the weeks that followed seemed both to overwhelm and distinguish itself from the more traditional devotion to the Queen herself and to her immediate family. The crisis was rescued by a live, televised speech she made from the Palace which was striking in its informality and obviously sincere expression of personal sorrow. As Simon Schama has put it,

The tidal wave of feeling that swept over the country testified to the sustained need of the public to come together in a recognizable community of sentiment, and to do so as the people of a democratic monarchy.

The funeral itself was like no other before, bringing the capital to a standstill. In Westminster Abbey, campaigners stood alongside aristocrats, entertainers with politicians and rock musicians with charity workers. Elton John performed a hastily rewritten version of ‘Candle in the Wind’, originally his lament for Marilyn Monroe, now dedicated to ‘England’s Rose’, and Princess Diana’s brother Earl Spencer made a half-coded attack from the pulpit on the Windsors’ treatment of his sister. This was applauded when it was relayed outside and clapping was heard in the Abbey itself. Diana’s body was driven to her last resting place at the Spencers’ ancestral home of Althorp in Northamptonshire. Nearly a decade later, and following many wild theories circulated through cyberspace which reappeared regularly in the press, an inquiry headed by a former Metropolitan Police commissioner concluded that she had died because the driver of her car was drunk and was speeding in order to throw off pursuing ‘paparazzi’ photographers. The Queen recovered her standing after her live broadcast about her wayward former daughter-in-law. She would later rise again in public esteem to be seen to be one of the most successful monarchs for centuries and the longest-serving ever. A popular film about her, including a sympathetic portrayal of these events, sealed this verdict.

HM Queen Elizabeth II in 2001.

Tony Blair never again quite captured the mood of the country as he did in those sad late summer days. It may be that his advice and assistance to the Queen in 1997 was as vital to her as it was, in the view of Palace officials, thoroughly impertinent. His instinct for popular culture when he arrived in power was certainly uncanny. The New Age spiritualism which came out into the open when Diana died was echoed among Blair’s Downing Street circle. What other politicians failed to grasp and what he did grasp, was the power of optimism expressed in the glossy world of celebrity, and the willingness of people to forgive their favourites not just once, but again and again. One of the negative longer-term consequences of all this was that charismatic celebrities discovered that, if they apologised and bared a little of their souls in public, they could get away with most things short of murder. For politicians, even charismatic ones like Blair, life would prove a little tougher, and the electorate would be less forgiving of oft-repeated mistakes.

(to be continued).

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.