Archive for the ‘Rolls-Royce’ Tag

Britain and the World, 1984-89: From local difficulties to global conflicts.   Leave a comment

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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.

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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.

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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.

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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?

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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. 

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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.

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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:

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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. 

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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.

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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.

 

Posted October 7, 2018 by TeamBritanniaHu in Affluence, Apartheid and the Cold War, Balkan Crises, BBC, Belgium, Berlin, Britain, British history, Britons, Brussels, Coalfields, Cold War, Commemoration, Commonwealth, Communism, Conservative Party, Europe, European Economic Community, European Union, Family, France, Germany, Gorbachev, History, Hungarian History, Hungary, Ireland, Labour Party, liberal democracy, Margaret Thatcher, Marxism, Memorial, Migration, Narrative, National Health Service (NHS), Navy, Poverty, privatization, Quakers (Religious Society of Friends), Revolution, Russia, Scotland, South Africa, Syria, terror, terrorism, Thatcherism, Uncategorized, Unemployment, USA, USSR, Warfare

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The Rise of Thatcherism in Britain, 1979-83: Part One.   1 comment

Margaret’s Marvellous Medicine:

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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Above: In an interview with BBC correspondent, John Simpson

The best evidence of Mrs Thatcher’s belligerent style to date had been the struggle with the other European leaders to reclaim roughly a billion pounds a year of net British payments to the Community. In ‘Thatcher speak’, getting our money back involved an undiplomatic brawl that went on from Dublin to Luxembourg to Brussels. She would not shut up, or back down. Diplomats from all sides suggested interesting side-deals, trade-offs, honourable compromises, but she brushed them all aside. Ultimately, she got three-quarters of what she had first demanded, but, astonishingly, she then said ‘no’. It was only when all her entire cabinet were in favour of the settlement that she grudgingly agreed. The press and the country were beginning to notice her tenacity. Her ‘Bothamesque’ innings in Brussels was to come back to haunt her when she was ‘savaged’ by Geoffrey Howe’s cricketing metaphors in 1990, but until then, the civil war within the Labour Party had helped protect her from the electoral consequences of her shift from the centre-ground. The Tories might be hated, but Labour was unelectable.

(to be continued…)

Posted September 22, 2018 by TeamBritanniaHu in Anti-racism, Austerity, Baptists, BBC, Britain, British history, Brussels, Christian Faith, Christianity, Church, Coalfields, Commonwealth, democracy, devolution, Egalitarianism, Europe, European Economic Community, Factories, Germany, History, Home Counties, Journalism, Literature, manufacturing, Methodism, Middle East, Migration, monetarism, Mythology, Narrative, nationalisation, nationalism, Nationality, Population, Second World War, south Wales, Spanish Civil War, Thatcherism, tyranny, Unemployment, Victorian, Wales, Welsh language, Women's History

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Britain & Ireland Fifty Years Ago, 1968-73: Troubles, Turmoil & Turning Points: Part Two.   Leave a comment

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Decline & Deindustrialisation under Heath:

The long-term decline of the nineteenth-century staple industries such as coal, iron and steel, and shipbuilding, was well underway by the early seventies and manageable only through nationalisation, but that of the manufacturing industries, in particular, became known a ‘deindustrialisation’ and posed a greater threat to Britain’s place in the world. Employment in manufacturing had reached a peak of nine million in 1966 but thereafter fell rapidly. The resulting mass unemployment hurt the old industries of the Northwest of England first, but by the early 1970s, they were proportionately as high in the West Midlands and the South-East, where the newer car-making and manufacturing industries were located, a process which continued into the mid-nineties (see map below). In fact, the decline in the South-East was actually much greater. The lowest was in East Anglia, simply because there was comparatively little manufacturing there to decline.

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A great variety of explanations for the decline in British manufacturing competitiveness has been put forward. None of the economic explanations has proved satisfactory, but one cultural reason may have some credence, that the British came to despise industry by the 1960s and that they were not sufficiently materialistic to work hard for the rewards associated with improved productivity. Added to this, complacency from generations of national success has been blamed, together with the post-war welfare state’s ‘cosseting’ of the workforce. In political terms, the failure of successive governments to address the needs of industry for research and development combined with the ‘exclusive’ cultural and educational background of the Civil Service has also been held responsible for the lack of modernisation of the economy. Obstructionist trade unions were a favourite target for many in the early seventies, but incompetent and outdated management was also a factor. Britain’s failing competitiveness was, by this time, making it increasingly difficult for governments to maintain high employment by intervening in the economy.

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In the summer of 1969, Enoch Powell (pictured above), representing one of the most rapidly declining manufacturing areas of the West Midlands, Wolverhampton, had continued to attack Heath on a broad range of policies, over the need for tax cuts, privatisation and freer markets in economics; over Northern Ireland or ‘Ulster’ as he referred to it,  over proposed British membership of the EEC, which Powell opposed as strongly as Heath supported it. So Powell’s battle-cry for repatriation and an end to immigration was taken by the Tory leadership as part of his campaign to unseat Heath and then replace him. There were plenty in the party and the country who yearned for just that. Apart from the dockers and other marchers, wealthy bankers wanted to fund a campaign for Powell’s leadership. Marcel Everton, a Worcestershire industrialist, raised money for a national federation of Powellite groups and talked of a march on Conservative headquarters to oust Heath. Wilson’s call for an election early in 1970, created an obvious trap which Powell could see very clearly even if his supporters ignored it. His best chance by far would be if Heath lost the election. Then he could attack him openly and perhaps even seize control of the party. Everton openly declared that it would be better for right-wingers to vote Labour so that the Tory party would fall into Enoch’s lap like a ripe cherry. Yet Powell himself recognised that he would be forever branded a traitor by thousands of loyal Conservatives. Either Heath would win and Powell would be finished, or he would lose and Powell would be blamed for splitting the party. Late in the campaign, Powell finally gave his clear and unequivocal support to the official Tory campaign, though not before he had caused Heath a great deal of irritation and embarrassment. Tony Benn called him…

… the real leader of the Conservative Party. He is a far stronger character than Mr Heath. He speaks his mind … Heath dare not attack him publicly even when he says things that disgust decent Conservatives … the flag hoisted at Wolverhampton is beginning to look like the one that fluttered over Dachau and Belsen.

Powell, once he realised the consequences of Heath’s victory, according to his biographer, sat around on his own with his head in his hands, deep in gloom. He had realised that, after Wilson, he had been the greatest loser of the election. The winners, at least in the medium-term, were a group of young Tories who eventually formed themselves into ‘the Selsdon Group’. The ‘Third Way’, a term which was given to the free-enterprise anti-collectivist economics of Tories like Anthony Barber, Edward du Cann and Keith Joseph at the Selsdon Park conference in 1969, prepared the way for Margaret Thatcher’s attempt in the 1980s to ‘roll back’ what was left of the welfare state. It was billed as a return to the Victorian values that had made Britain great, but was not a revival of Gladstonian liberalism, nor even to Palmerstonian ‘gunboat diplomacy’ which at times the Thatcher administrations resembled. Heath abandoned the 1970 manifesto in the face of bitter opposition from the trade unions. This historic U-turn was the catalyst for the formation of the Selsdon Group in 1973.  A handful of young libertarian Conservatives created the new group with Nicholas Ridley MP as president to uphold and promote the free market policies that they believed had won the Conservative Party the 1970 General Election. The group was criticised by many figures within the Conservative Party establishment at the time. Many of its policies, however, influenced later governments led by Margaret Thatcher and John Major. In economic terms at least, the Thatcher government elected in 1979 was a return to the hard-faced monetary control of the 1920s in which resistance to brutal rationalization through closure or by wage and job reductions took the form of determined opposition from trades unions.

Deindustrialisation was not simply a regional problem of the older industrial areas of the North of England and Wales. Nonetheless, long-standing regional disadvantages in terms of employment opportunities and incomes were continuing and worsening – the north-south divide was growing. Employment in agriculture was also in decline; only the service sector was expanding, becoming the major employer in all regions by the mid-seventies (see the diagrammatic map below). But this sectoral growth was still in the future in the early seventies, and it is hard to underestimate quite how heavily, how painfully, relative economic decline weighed on the necks of all politicians forty to fifty years ago.

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Edward Heath’s government (1970-74) struggled to follow pro-active, interventionist policies in the face of the world recession associated with the OPEC oil price rise of 1973. But before that, British productivity had remained pitifully low compared to both the United States, Japan and the European Economic Community, a major reason why there was no real opposition in the country to it joining the EEC. The country was spending too much on new consumer goods and not nearly enough on modernised and more efficient factories and businesses. Prices were rising by seven per cent and wages by double that. Britain was still part of the old post-war world of fixed exchange rates which meant that the Heath government, like those of Attlee and Wilson faced a sterling crisis and perhaps another devaluation.

Heath had identified reform of the unions as his first challenge. They had just seen off Wilson and Barbara Castle’s attempts to ‘moderate’ them collectively, so Heath had decided that he would need to take them on individually, facing down at least one major public sector strike, in addition to removing some of the benefits that he thought encouraged strikes. Britain not only had heavy levels of unionization through all the key industries but also, by modern standards, an incredible number of different unions, more than six hundred altogether. Some of these were still organised on a ‘craft’ basis more relevant to a nineteenth-century economy, rather than as modern industrial unions, and others, like the Transport and General Workers’ Union, incorporated masses of unskilled and semi-skilled labourers across a range of occupations. As a result, the leaders of large unions had only a wobbly hold on what happened on the factory floor or at the dockside. It was a time of industrial militancy at shop-floor level, and this mood was made fun of by the 1973 hit from the folk-rock band the Strawbs, whose song, Part of the Union, had the chorus, You don’t get me, I’m part of the union and each verse began with a reason why:

As a union man I’m wise to the lies of the company spies … With a hell of a shout it’s “out, brothers, out!” … I always get my way, if I strike for higher pay … So though I’m a working man, I can ruin the government’s plan …

So he could, and so he did. Almost immediately on coming to power, Heath had faced a dock strike, followed by a big pay settlement for local authority dustmen, then a power workers’ go-slow which led to power cuts. Then the postal workers struck. Douglas Hurd, later regarded as a ‘wet’ in Margaret Thatcher’s government of nine years later, was Heath’s parliamentary personal secretary at the time, and recorded in his diary:

A bad day. It is clear that all the weeks of planning in the civil service have totally failed to cope with what is happening in the electricity dispute; and all the pressures are to surrender.

Hurd confronted Heath in his dressing-gown, warning him that the government machine was moving too slowly, far behind events. Apparently, things were so bad in the car industry that Henry Ford III visited to warn Heath that his company was thinking of pulling out of Dagenham and its other plants in the UK. Yet Heath’s Industrial Relations Bill of 1971 was ‘balanced’ in its approach, even giving new rights to trade unions while at the same time trying to make agreements with employers legally enforceable through a new system of industrial courts. This was following in the conciliatory footsteps of Wilson and Castle, rather than embarking on a more radical journey.

However, the role of the local shop-steward organisation was sometimes be exaggerated by the press at the time and has sometimes been overplayed by more recent commentators. In the Coventry car industry, where a worker was said to work half as hard as his Dagenham counterpart, Stephen Tolliday has pointed to the difference between factories as being the result of the unions consolidating their positions in the late forties and early fifties in Coventry, whereas workers at Ford, Morris, Austin and Vauxhall were poorly organised until the late 1950s. One might, therefore, expect the extension of union organisation to have a marked effect in pushing forward relative earnings. On the contrary, however, average weekly earnings in the period fell back from twenty-four per cent above the national average between 1959 and 1963 to nineteen per cent between 1968 and 1973. Given that motor industry productivity growth was above average and that union density was increasing in motors throughout the sixties, more quickly than in manufacturing as a whole, this could be an indicator that shop floor bargaining did not have as decisive an impact as has been often asserted. As Bill Lancaster and Tony Mason have pointed out, the caricature of the greedy… car worker… prone to go on strike is somewhat misleading… co-operation with management was still the norm. It was the workers in the older industries who were finding it more difficult to maintain a ‘living wage’. So then the miners struck…

The National Miners’ Strike of 1972:

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At the beginning of 1972, the National Union of Mineworkers (NUM) began their first national strike since the dark days of the 1920s. The government, with modest coal stocks, was quickly taken by surprise at the disciplined and aggressive tactics of the NUM. Arthur Scargill (pictured above), a rousing speaker, former Communist Party member and highly ambitious union activist, described the mass picket at Saltley as “the greatest day of my life.” Heath blamed the police for being too soft; for the PM, Scargill’s greatest day was…

… the most vivid, direct and terrifying challenge to the rule of law that I could ever recall emerging from within our own country. … We were facing civil disorder on a massive scale … the prospect of the country becoming ungovernable, or having to use the armed forces to restore order, which public opinion would never have tolerated…

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Following the miners’ victory, Heath and his ministers knew that they would have to go directly to the country with an appeal about who was in charge but before that, they tried a final round of compromise and negotiation. It went under the name of tripartism, a three-way national agreement on prices and wages, investment and benefits, involving the government, the TUC and the CBI. The Industry Act of 1972 gave the Tory government unprecedented powers of industrial intervention. There was much ‘wooing’ of moderate trade union leaders. Money, effort and organisation went into Job Centres as unemployment rose steadily towards a million. The industrialists did as much as they could, sitting on yet more committees when in truth they might have been more usefully employed trying to run their companies. The unions, however, had the bit between their teeth. By first refusing to recognise Heath’s industrial relations court as really legitimately a law of the land, and then refusing to negotiate seriously until he repealed the Act, they made the breakdown of this last attempt at consensual economics almost inevitable.

By now, Heath had leaned so far to the left to try to win over the unions that he was behaving like a Wilsonian socialist. He was reinstating ‘planning’, particularly on a regional basis. He was bailing out failing companies such as Upper Clyde Shipbuilders, something he later regarded as a mistake. By offering the unions a privileged place in the running of the nation he had hoped that the individual roles of trade union leaders, as well as those of company directors and politicians, would take second place behind a general commitment to ‘the common good’. But those leaders had got their jobs by promising their members higher wages and better conditions. They could hardly be blamed for doing everything they could within the law to carry out the role they had been given. Similarly, industrialists were driven by profit margins and returns to investors; they were not auxiliary politicians. Heath’s government was later criticised by ‘Thatcherites’ for doing things which a government ought not to do, while not doing things that it ought to do. It was not the business of good governments to try to run businesses or to do the wage bargaining of companies and trade unions for them. Neither should they attempt to control prices.

The Heath government also introduced tax reforms, meant to increase investment, a deal with business on keeping price rises to five per cent, and even some limited privatisation – the travel agents, Thomas Cook, then in public ownership, was sold off, along with some breweries. But Tory messages were still mixed and Heath’s instincts on state control were quickly tested when the most valuable parts of Rolls-Royce faced bankruptcy over the cost of developing new aircraft engines. Unemployment rose sharply in Coventry as employment in the city’s manufacturing industries continued to decline rapidly. Heath briskly nationalised the company, with the engine plant being taken into government hands as a ‘lame duck’. In all, the measures saved eighty thousand jobs, allowing the company to regroup and survive, to the relief of the defence industry. It did revive and was returned to the private sector, making it a clear example, with hindsight, of how nationalisation could be made to work in everyone’s interest. On the other hand, cuts in some personal taxes encouraged spending and thereby increased inflation. This was further fuelled by the removal of lending limits for high street banks which encouraged home ownership through mortgage borrowing. An unbalanced amount was sunk into bricks and lawns over the next thirty to forty years, and the credit ‘boom’ and ‘bust’, involving long-term unaffordable increases in property prices can be traced back to this decision.

Heath’s ‘corporatism’ has been derided and forgotten in the wake of the monetarist, free-market economics of the thirty-year ‘Thatcher era’. In reality, much of the country in the early seventies was simply more left-wing than it was even just five years later. The unions, having defeated their own political leaders, were more self-confident than ever before or since. Many industrial workers, living in bleak towns far away from the glossy pop world of the ‘swinging’ cities, were underpaid and left behind. Heath himself later argued that the consequences of an alternative policy, the mass unemployment of the 1980s, would have been unacceptable to the country in the previous decade. He was surely right in this assessment.  

What finally finished off the Heath government was the short ‘Yom Kippur war’ between Israel and Egypt in October 1973. Israel’s swift and decisive victory was a humiliation for the Arab world and it struck back, using oil. The international cartel of oil producers retaliated against the West after the USA gave Israel strong support during the war, by cutting the supplies of oil each month, thereby quadrupling the price of oil. In addition to provoking an immediate recession, this also fuelled international inflation, and in Britain it arrived with special force. The miners put in another huge wage claim, which would have added half as much again to their wage packets. Despite an appeal by its leader, the moderate Joe Gormley, the NUM executive rejected a thirteen per cent pay increase and voted to ballot for another national strike.

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The rise in oil prices stimulated the search for new sources in British and Irish waters, but these were still the days just before North Sea oil and gas were being produced commercially. Britain could survive high oil prices for a while and could endure coal shortages for a while, but both coming together represented a ‘perfect storm’, or, as the Chancellor Anthony Barber called it, the greatest economic crisis since the war. It certainly compared to that of 1947. Coal stocks had not been built up in preparation for a stoppage so that a whole series of panic measures were introduced. Plans were made for petrol rationing and coupons printed and distributed. The national speed limit was cut by twenty miles per hour, to fifty, in order to save fuel. Then, in January, came the announcement of a three-day working week.

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By the end of 1973, Britain had entered a period of severe recession. This was set against the background of Britain’s share of world trade falling dramatically, from over twenty per cent in the 1950s to about ten per cent by 1975. Nor could it maintain its hold on the domestic market; in 1965 only one car in twenty was imported but by 1978 about half were. Oil and fuel price rises together with the general recession also had the effect of cutting back expenditure on British motorway construction and motor vehicle use during the 1970s. Plans to triple the 660 miles (1,060 km) of motorway in use by 1970 were also frustrated by environmental protest (see map above).

Common Market, Commonwealth and Immigration:

Above: Front page report from the Guardian, 1st January 1973

Edward Heath is a political leader whose reputation and legacy deserves to be revisited. If his premiership, which lasted less than four years, is associated with a single action, it is British entry into ‘Europe’, but throughout his time in office, it was the economy, not Europe, which was the biggest problem facing him. Certainly, his attempts to rein in trade union power and to conquer inflation failed, as did those of Wilson, both before and after his government. The cause that excited him more than any other, Europe, also inflamed his enemies who accused him of lying to the country about the true, political nature of the coming political union which would eventually, inevitably, replaced the Economic Community. These claims, although largely a work of fiction, have continued to play as a strong narrative right up to the current time of ‘Brexit’. Apart from being the first Tory leader to break through the class barriers of the old party and to promote other ‘outsiders’ to the cabinet, his European vision was the product of his own first-hand experiences. Before the war, on a student visit to Germany, he had literally rubbed shoulders with Hitler and met other Nazi leaders. Later he had returned as a fighting officer to see their final defeat in 1945. As he wrote later:

My generation did not have the option of living in the past; we had to work for the future. We were surrounded by destruction, homelessness, hunger and despair. Only by working together right across our continent had we any hope of creating a society which would uphold the true values of European civilisation. 

He was a genuinely compassionate conservative and an unusually brave politician, whose analysis of what was wrong with Britain in the seventies was far more acute than Wilson’s. But he was no starry-eyed idealist when it came to negotiating Britain’s entry to the EEC. He had risen through the Tory Parliamentary Party as a tough chief whip and then as an equally tough negotiator on Europe in the Macmillan years when he had struggled in the face of President de Gaulle’s repeated ‘Non’. Long before becoming PM, he had identified Georges Pompidou, who replaced de Gaulle, as his likely future interlocutor, the man who would say ‘Oui’. Heath later revealed how Pompidou had told him, in French, at Chequers:

If you ever want to know what my policy is, don’t bother to call me on the telephone. I do not speak English, and your French is awful. Just remember that I am a peasant, and my policy will always be to support the peasants.

Pompidou was giving ‘fair warning’ about the vast expense of the Common Agricultural Policy (CAP), but it did not truly reflect his wider vision of Europe. In fact, he wanted a Europe of large manufacturing countries to take on the cartels of the US and the Far East. By 1970, after a decade during which Britain had grown much more slowly than the six members of the Common Market, Heath was in a weaker position now than he had been under Macmillan. But besides being a trusted negotiator by the French, Britain’s economic weakness served as a strength with Paris at that time, and Pompidou believed that ‘les rosbifs’ were ready to be admitted. Like the rest of the Community, France had struggled for years to understand what Britain really wanted, especially when the British left had appeared so divided on the issue. After eighteen months of further tough negotiations as PM, and in the teeth of opposition from Britain’s fishermen and the Powellites, a deal was thrashed out. It left intact the existing Common Market designed for the convenience of French farmers, and vast amounts of European law had to be swallowed whole. The Commonwealth farmers’ deal was won at the expense of a worse deal on the budget, which would later be reopened by Margaret Thatcher. The British negotiators had decided that it was important for their country’s future to get an entry deal.

When Heath began negotiations, Wilson was a publicly declared supporter of British membership, but as accession loomed, he began sniping at Heath, perhaps looking over his shoulder at his potential successor, Jim Callaghan, who was campaigning openly against membership. The left was in full cry, and two-thirds of Labour’s MPs were on Callaghan’s side. So Wilson changed his position on tactical grounds, claiming that he could not support membership on the Heath terms. After the long and tortuous negotiations, this infuriated the Labour pro-Europeans. Neither did it enthuse the anti-Marketeers, who simply did not believe that Wilson had had a change of heart and assumed that he would sign up if and when he was returned to Number Ten. Nevertheless, when the Heath proposals for membership were put to the Commons, sixty-nine Labour pro-Europeans led by Roy Jenkins defied the party whips and voted with the Conservatives. The left-wing New Statesman delivered a withering verdict on Wilson, whom it labelled as…

… the principal apostle of cynicism, the unwitting evangelist of disillusion … Mr Wilson has now sunk to a position where his very presence in Labour’s leadership pollutes the atmosphere of politics.

After winning the Commons vote, Heath returned to Downing Street to play Bach on the piano, while the opposition MPs, not for the first or last time, conducted screaming matches and ghastly personal confrontations in the voting lobbies. In the aftermath, Tony Benn began to argue that on a decision of such national importance, the people should be able to vote in a referendum. His constituency was in Bristol, represented by the great philosopher Edmund Burke in the eighteenth century. Burke had once sent a letter to his constituents explaining to them that as their MP he owed them his judgement, not his slavish obedience to their opinions. Reversing this argument, Benn expressed the view that a democracy which denied its people the right to choose directly on a matter of such importance would lose all respect. To begin with, Benn had almost no support for his radical view of ‘direct democracy’. Labour traditionalists despised ‘plebiscites’ as the populist devices of fascist demagogues, not in keeping with the principles of representative democracy. Harold Wilson had committed himself publicly and repeatedly against a referendum. Slowly and painfully, however, he came to realise that opposing Heath’s deal while promising to renegotiate, while offering a referendum could be the way out. When Pompidou suddenly announced that France would be holding a referendum on the issue, Wilson snatched at the Benn plan. Although the referendum was still two years away, Wilson’s ‘switch’ had set an important precedent, providing a means for parties to divide on key issues, but remain intact.

Immigration from the ‘old empire’ continued but, following restrictive legislation by Britain, at greatly reduced levels. The 1968 Immigration Act was specifically targeted at restricting Kenyan Asians with British passports. When Ted Heath came to power in the General Election of 1970, he showed that he was desperately worried about the anti-immigration mood which had been revealed in this most bitter of elections. Heath’s manifesto had promised a new single system of control over all immigration from overseas. While denouncing Powell, he moved quickly to pass a restrictive piece of legislation which removed the right to immigrate to Britain of anyone who did not have a parent or grandparent born in the country. The 1971 Immigration Act effectively restricted citizenship on racial grounds by enacting this ‘Grandfather Clause’, by which a Commonwealth citizen who could prove that one of his or her grandparents was born in the UK was entitled to immediate entry clearance. This operated to the disadvantage of black and Asian applicants while favouring citizens from the ‘old Commonwealth’ – the descendants of (white) British settlers from Australia, New Zealand, Canada and South Africa. Powell hit back by likening the distinction to a Nazi race purity law; he wanted a new definition of British citizenship instead. The grandparent rule was defeated by the right and the left combining for opposite reasons, though it was restored two years later. Thus immigration control had moved away from primary immigration to restricting the entry of dependants, or secondary immigration.

Had this been all, then Heath would be remembered as being yet another panicked politician, slamming the door shut and keeping his party happy. It was not all, since the Kenyan crisis of 1968 was about to be replayed, this time at greater speed, in Uganda. There, the anti-British Prime Minister, Milton Obote, had just been replaced in a coup by the fat, swaggering, Sandhurst-educated Idi Amin who announced that he had been told in a dream that he must expel the country’s Asian population, just as the Kenyans had done. Amin was clearly a monster, whose thugs clubbed his enemies to death with staves, who threatened to kill British journalists, who was rumoured to keep human flesh in his fridge and to feast on it, and who enthused about the way the Nazis had dealt with the Jews. Though Powell argued angrily that Britain had no obligation to the trapped Ugandan Asians, Heath acted decisively to allow them in to settle. Airlifts were arranged, and some 28,000 people arrived within a few weeks in 1971. They eventually settled in the same areas as other East African Asians, even though Leicester, which had become the ‘least white’ city in England, had published notices in Ugandan papers pleading with migrants not to try to settle there. Within a few years, Powell would no longer be a conservative, Heath having confronted him head on and defeated him.

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The employment available to new immigrants was poorly paid and working conditions were little better, causing some black and Asian workers to resort to industrial action. The photograph above shows an Asian immigrant employed in a Bradford textile factory. The decline of this industry in the early seventies led to high long-term unemployment in the Asian communities. To begin with, faced with prejudice in finding private rented accommodation, as well as more subtle discrimination in residency requirements for council housing, immigrants tended to concentrate in poor inner city areas, as can be seen below in the map of Birmingham in 1971. However, as New Commonwealth immigrants began to become established throughout Birmingham and the West Midlands, community infrastructure including places of worship, ethnic grocers, butchers and restaurants began to develop. These contributions to the cultural and social life of the British cities helped to overcome earlier prejudices among the native population, and some middle-class Indians began to move further out into the suburbs.

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Britain’s experience of migration is not just a narrative of those who have come to Britain, but also of those who have left, to South Africa, Australia, Canada and New Zealand, well over half a million in the sixties alone. At the same time, there is no doubt that, more than any almost any other single social factor in post-1945 Britain, immigration changed Britain. At no stage was there a measured and frank assessment of the likely scale and long-term social effects of immigration by party leaders, voluntarily, in front of the electorate. The main parties did very little to ensure that mass immigration from the Caribbean, the Indian subcontinent and East Africa was successful. West Indians and Ugandan Asians got very little official help to integrate into British society. The reluctance with which the latter were let into Britain in 1972 showed how narrow-minded and less generous towards its former imperial subjects Britain had become. There was very little attempt to create mixed communities or to avoid mini-ghettoes. The real question is whether this neglect of public opinion and of the consequences of immigration, not least for the immigrant communities, has produced a better country. It is now clear that this is a far bigger story than simply a tidying up after Empire.

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Further afield, Britain had retreated from most of its empire by the 1970s. The major remaining colony was Rhodesia, which had been illegally ruled by a white minority government since 1967 when it had declared independence unilaterally. In 1968 the Labour government decided to pull the considerable British contingents out of the Persian Gulf and Singapore, which was done by 1971. There was also an end to Britain’s role ‘east of Suez’. The fabric of the old empire had gone and now the frame which had taken its weight had gone too. There was nothing left but a few bricks, and some shadows. None of the shadows was substantial enough to make up fully for what had been lost. At first it was thought that the Commonwealth might. In the 1950s the fact that so many ex-colonies had elected to stay within the Commonwealth had led some imperialists to assume a substantive continuity between it and the old empire: with the black and brown nations joining Australia, New Zealand and Canada in an extended family cemented by common bonds of tradition, friendship and mutual interest. They believed that the whole structure could be a force to be reckoned with in the world still. The old imperialists retained a sentimental affection for it and sought to cement its parts more tightly together, through trade preferences for Commonwealth countries, and by preserving the definition of ‘British nationality’ which had been laid down in 1948, allowing all Commonwealth citizens the right to enter Britain freely, without restriction.

‘Common citizenship’ was meant to symbolise the continuing unity, and hence the strength of ‘Empire into Commonwealth’. But by the sixties, it had become abundantly clear that the Commonwealth was turning out to be something less than the sum of its countries. Its members did not have common interests, not even the ‘white’ dominions among them, which were too far apart geographically, if not politically. For the black and brown nations, their membership was not an expression of filial gratitude and loyalty. Rather it provided merely a convenient platform on the world stage from which they could air their grievances against Britain and demand a share of whatever British aid was available. The Commonwealth was never united. Its new members fought each other, broke off diplomatic relations with each other and with the ‘mother country’. In 1971, at a conference in Singapore, they sent Edward Heath into a ‘huff’ by criticising him over the issue of supplying arms to South Africa, which had been forced out of the association in 1961. Clearly, this new organisation was of little use as a means of exerting British power and influence in the world.

no british arms AA

There were some in public life who continued to value the new Commonwealth, but as something rather different from the old empire: as an informal debating club for widely divergent cultures, a possible means of scaling the barriers of racism and chauvinism going up all over the world, an example to the world of how different countries and continents could get along together even if they could not agree together, a corrective to the contemporary  consolidation of the world into continental blocs. Alongside the idealistic old imperialists, there were also anti-imperialist Fabians who were genuinely interested in questions of international co-operation and foreign aid. When a television series about the British Empire in 1972 provoked a flood of letters to the newspapers and a lengthy debate in the House of Lords, most of the letters and many of the speeches betraying an almost personal sense of injury, it was clear that there had been a ‘bottling up’ in some élite quarters of strong emotions on the issue of an Empire which some still felt had been the noblest Empire the world had ever seen. For the most part, however, the mass of the ‘ordinary’ British people cared little about it.

That the empire was almost forgotten in Britain by the seventies did not mean that it had left no marks at all, or that it was quite gone. In a strictly legalistic sense, Britain still had overseas colonies and crown dependencies. Most importantly, she still had Rhodesia, though she had been powerless to do anything there since Smith’s UDI. She also had Hong Kong, with four million inhabitants, but otherwise, the total population of all her other outposts was well under a million. These traces of empire could be irritating, but they were little more. They were not the significant remains of empire. For all parties concerned, however, the British empire left a legacy which was substantial and lasting, though it was not one which was altogether predictable or intended. In 1969 Professor Max Beloff warned that the loss of empire might make Britain parochial and bitter:

We now face … the danger of a sudden and total revulsion against anything that reminds us of past advantages and past glories, a sudden shift into an isolationist little-Englandism with unhealthy overtones of xenophobia and even racialism accompanying it.

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The treatment most frequently prescribed for Britain’s post-imperial trauma was to join the European Economic Community, to give Britain a new European vision to compensate for the loss of its imperial one and a share in something big again. But when Britain eventually joined in January 1973, it was with a sullenness and singular lack of enthusiasm and public support which was attributed by other countries to her unwillingness to shake off her imperial past, and accept that she was now, like France, just an ordinary European nation. This excuse was widely seized on by British observers too. During the 1970s the view that Britain had wasted her first twenty-five post-war years clinging nostalgically to outworn imperial glories became something of an established orthodoxy. Nicholas Henderson, a retiring ambassador, recollected in 1979:

We had… every western European government eating out of our hand in the immediate aftermath of war. For several years our prestige and influence were paramount and we could have stamped Europe as we wished.

But the opportunity was allowed to pass, as the British spurned the Schuman Plan, with the result that Europe eventually formed its own ‘community’ of nations without reference to Britain. That was why when Britain joined that community later, its terms were so unfavourable to her. There were a number of reasons for Britain’s blunder, but the chief ones were her loyalty to her Commonwealth and the illusion that she still had a global role. These were clearly both legacies of empire, and extremely damaging ones. Britain’s subsequent fractious position within the EEC and her 2016 Referendum decision to leave derives from the fact that her old imperial blinkers led her to read the signs of the times too late. These conclusions are currently too controversial to go into in detail here, especially as neither the chronicles nor the narratives are yet complete, but it is interesting to note how ubiquitous it was in the 1970s, especially in the view of the empire as a kind of ghostly dragon Britain’s coat-tails after the vision had died among imperialists. The bright new cause of ‘Europeanism’ gave light to a new generation as the liberal and internationalist antidote to imperialism, but the old empire continued to cast a long shadow over British politics.

It was also widely blamed for Britain’s economic decline, as we have seen. Britain had been falling behind the other industrial powers for many years before 1970. After that year, however, the situation got worse. After twenty years of full employment, minimal inflation and rising standards of living, which buffered the social impact of Britain’s relative decline, it became associated with mass unemployment, high inflation and lower living standards once again. But it was also a common ploy in the 1970s to put the blame on the empire for Britain’s managerial shortcomings. The argument was that the service of the empire had somehow displaced the running of manufacturing industry as an object of ambition for the younger generations of the middle classes. As one public school headmaster put it in 1980, Britain’s imperial experience had left her with too many ‘prefects’ and not enough ‘pirates’ for the post-imperial age. In the past, Sir Keith Joseph once said, Britain’s trouble had been that it had never had a proper capitalist ruling class; in 1979 the government of which he was a member sought consciously to remedy this. Back in the days of the oil crisis of 1973-74, it was obvious that if Britain had still been able to dictate policy in the Persian Gulf, the West could not have been ‘held to ransom’ and neither could the miners have done the same to Heath’s government. Yet asked by some Gallup pollsters whether they thought it was important for Britain to retain her status as a major world power, only thirty per cent replied ‘yes’ in 1975 compared with fifty-five per cent ten years earlier. Significantly, this was also the year in which the British people expressed their ‘will’ in Wilson’s Referendum to remain in the EEC, by a similar majority of two to one. The imperial ‘game’ was over, though it would be remembered with nostalgia by many for decades to come. As Bernard Porter has commented, even cricket became commercialised and vulgarized in the 1970s in the wake of the decline of the old imperialist ‘fuddy-duddies’ in the MCC (Marylebone Cricket Club).

Sources:

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

Joanna Bourke, Sabine Wichert, Roger Middleton, John Swift (contributors) (2001), The Penguin Atlas of British and Irish History. London: Penguin Books.

Bernard Porter (1984), The Lion’s Share: A Short History of British Imperialism, 1850-1983. Harlow: Longman.

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