Skip to content

The End of Thatcherism

The nature and prospects of the extraordinary coalition now setting out to govern Britain for five years

Published:

This week's creation of a Conservative led coalition with the Liberal  Democrats has brought the period associated with Margaret Thatcher after her election in 1979 to an end. The UK will continue to play its part in global capitalism but a new kind of domestic politics is on offer. One way of describing it, uncomfortable  as it may be for me to report, is that the transition from New Labour to a Tory led  coalition promises a distinctly more progressive government in the  UK. If indeed the Coalition agreement is carried out, then the new government will be to  the left of its predecessor by being:

  • tougher on the bankers
  • more  focused on helping the very poor
  • more  democratic
  • ending New Labour’s assault on liberty
  • Europeanising Westminster politics
  • implementing greener policies
  • reintroducing cabinet government

This is relative praise. It remains a Tory government. The new coalition says it  is planning to stuff the House of Lords with 200 cronies to secure its  majority there, who will stay for their lifetimes; it will not  investigate our use of torture; it says it will ask the British people  to decide on how we vote yet, despite language about “grown-up”  politics, it will treat us like infants and not permit us to consider a  proportional system. And, of course there is the  famous chasm between words and deeds.

However, for  those of us involved with the Convention on Modern Liberty, especially  my Co-Director Henry Porter who led the way in campaigning against New  Labour’s transforming the British state into an instrument of hi-tech  despotism, the coalition’s programme is a triumph, as he has rightly claimed. First for  what it delivers, in rolling back ID cards, the National Information  Register and the promise of a Great Repeal Bill. Second, for prevailing  not least thanks to the Guardian/Observer, over the Murdoch press and  the BBC - which refused to report on civil liberties as a serious issue  and still doesn’t. Third, in terms of political culture that the  Convention plugged into - the latent energy of collaboration and  constructive discussion of differences, as against tribalism. The first  press conference of Prime Minister Cameron and his Deputy displayed an  embrace of this culture proclaiming it as a different and better way of  doing things.

It is. We will see whether they can continue to embrace it. This be Britain. Our  political class is exceptionally determined and flexible. Can pluralism  really be proclaimed by scions of perhaps the narrowest and most  homogeneous elite in the world? Our liberty may have been saved for the  moment, which is a great achievement. Our so-called democracy is merely  being modernised - and in a fashion designed to pre-empt the real change the  document proclaims. First, liberty had to be saved and this seems to  have happened. Next, liberty needs to be secured. Which means it needs to  be grounded in law-based democracy and breath in the open air. If it  remains in the secretive hands of the UK state it won't be long before  it once again needs life-support.

The Coalition agreement  says that a referendum on the electoral system and reform of the Lords  will finally happen. These impact on the heart of British power so long  protected by New Labour. Yet the way in which their reform is being proposed is  designed to close down democracy under a verbiage of declarations about  'new politics'. Can the obvious incoherence open the way for something  better? A lot of campaigning will be needed to achieve this. Yet an  unprecedented opening has occurred. A leading Lib Dem blogger, James  Graham, expressing pride in his party and disappointment in Labour’s  arrogance, politely signaled his determination:

enthusiasm amongst the public for genuine voting reform  is growing  exponentially. I hope the Liberal Democrats in government will not begrudge  the fact that many of us will not take this lying down, and use every  measure at our disposal to force parliament to offer the public a proper  choice.

Replacing Thatcherism

The centerpiece of what has  happened, however, is the transformation of the Tory Party. All those  cheap and lazy jibes about toffs taking us back to Thatcher-style  polarisation have been shown to be so much vapour. On the contrary, what  Cameron has done is to return Toryism to its one-nation Whig tradition.  He has broken the spell that Thatcherism and its conviction politics  has had over his party since the coup that ousted her in 1990. And his  combining with Nick Clegg could break the grip of Thatcher’s wider  political culture over British politics as a whole. Her sense of  principle and belief in British institutions had long been eviscerated  by New Labour, leaving behind only her legacy of macho bullying and  devious cunning personified by Peter Mandelson and Alistair Campbell.  Now they too have been swept away.

In his magisterial introduction to Britain Since 1918 David Marquand identifies four shaping traditions in British  politics. They are all forms of democracy. They cut across left and  right. Most of the major political leaders and all the big parties have  combined different strands. They are: whig imperialism, tory  nationalism, democratic collectivism and democratic republicanism.

Churchill, for  example, was 'whig  imperial': his was a one-nation, consensual, great-British politics  appealing to all classes. It was built upon to create the welfare state  by the 'democratic collectivism' of Attlee’s post-war government. When  the stifling consensus politics that resulted collapsed in the 1970s, it  opened the way for Thatcher.  She used ‘Tory nationalism’ to draw upon  Churchillist themes thanks to the Falkland’s war. But in fact she broke  both the wings of the post-1945 settlement: whig imperialism, scorned as  wet and liberal, and democratic centralism including its trade union  base.

Her election in 1979 was thus a true turning point for the UK.  After 1997 Blair and Brown proved to be Thatcher’s “sons” as Simon  Jenkins documented. They oversaw many  humanizing reforms, and tried to heal the social wounds of Thatcher's  divisiveness, but were unable to offer a coherent alternative to her  Tory nationalism. Instead they sought to protect their efforts at social  improvement by outbidding her search for national greatness: backing  globalisation and finance capital by giving the City of London an even  bigger bang than she did, and outdoing her belligerence by going to war  even more often and doing so illegally as well. Looking back one can see  that the many good things that have happened since 1997 were  achieved despite the core project of New Labour not because of it. That  core project was to climb on board the neo-liberal engine of  global finance and military  supremacy to ensure continuity in office.

David  Cameron's stated aim was to carry on this tradition and at the same time persuade both  his party and the country that the Conservatives had returned to their  inclusive whig tradition. In other words to be even better at providing  Thatcherism with a human face than Blair and Brown. But the still  ongoing great financial crash put an end to this vainglorious  ambition. Instead, Cameron has seized the opportunity offered by a hung  parliament to reshape the nature of his party and the country’s  politics. It is a turning point as sharp as 1979. It deposits New Labour  into its Thatcherite dustbin. It demonstrates what realignment really  means.

While everyone has been talking about Nick Clegg as a  ‘kingmaker’ who had to decide which suitor to back, the game was really  changed by Cameron’s vision. He could have decided to govern as a  minority party and offered the Lib Dems concessions to ensure its  survival, until he could call another election, perhaps on the basis of  re-drawn constituencies that eliminated the bias against his party, to  sweep back to power on a majority. This is what the Labour’s leader  Harold Wilson did in 1974 when he had a hung parliament and, in effect,  after 1964 when he had a majority of just six. Had Cameron played the  usual game he would have exploited the Prime Minister’s powers to call  an election to bring back one-party government as  usual.

Instead, he used the financial crisis to chose a strikingly  different course: that of a full coalition which has given itself a  fixed term of five years, long enough to impose economic cuts and (he  hopes) recover from the deflation his programme is likely to cause  before going to the country.

Cameron did this for at least three  underlying reasons. First, the Union.  The swing to the Conservatives in  England would have given the Conservatives a comfortable majority of  seats under the UK’s first-past-the-post system (although they have only  40 per cent of the votes, a fact that underscores their opposition to  fair voting). But Scotland swung the other way, towards Labour. It had  been clear for some time that this was happening. While Conservatives  gained support South of the border, it was anti-Tory sentiment that was growing to its north (even if the SNP  was not benefiting). For public sentiment to move in diametrically  opposite directions means fundamentally different political dynamics are  at work. The starkest way of putting this from the Tory point of view  is this: if they want to be sure of governing with a stable majority  under first-past-the-post they would have to get rid of Scotland. If  they wanted to preserve the union they would have to go into coalition  with a Scottish party. Whether or not it succeeds, the deal with the Lib Dems is an attempt to  solve this problem as Gerry Hassan shows. It gives the Coalition 12 Scottish seats and 36 per  cent of the votes (similar to Labour’s total in the UK after the last  election). Without them a Tory minority government would have held just  one constituency out of 59 and lacked all legitimacy across the northern  part of the Kingdom.

Second, Europe. Cameron in good whig imperial fashion wants to make sure British political influence  is exercised in international circles. With an Obama administration  opposed to the UK playing the role of offshore rider to American  exceptionalism, the new Conservative leader needed to reposition the  Tory party in the EU, where it had become dangerously isolated. As the  most pro-European party with deep connections into the EU (both Clegg and  his colleague Chris Huhne now Environment Secretary, are ex-MEPs) a  coalition with the Lib Dems transforms the European body-language of a  Tory led government. If by your partners you shall know them, then the  Conservatives partnership with the Lib Dems easily overrides their  European Parliament alliance with the rightist fruitcakes of ECR and  Cameron’s government can now network into Brussels with ease thanks to  its coalition partners.

Third, domestically. Cameron set out  to ‘detoxify’ the Tory Party and to stop it from being hated for the  nationalism, xenophobia, racism and homophobia with which large elements of  the electorate associate it. The electoral imperative was confirmed on 6 May when the loss of the gay and ethnic votes especially across  London helped cost the Conservatives their majority. (The same  calculation has been made in terms of the more measurable UKIP vote,  however Cameron did not want to lead a party that would appeal to such  ‘toxic’ supporters and would have lost by far-greater numbers had he  done so.) Today, the Chairman of the Conservative Party is a woman  Muslim, She will attend Cabinet. This would have been unimaginable  fifteen years ago.  On its own, such an appointment can always carry the  flag of tokenism. In association with the larger coalition it  reinforces the spirit of creative inclusion Cameron seeks: to  reassure fearful voters that Tories can be normal, as the rebarbative legacy of Thatcherism is put to rest.

The defining  nature of the state

There is another domestic element to  Cameron’s coalition politics. It reinforces his vision of the state. There  have been many expressions of disappointment on the left about the  failure of Labour and the Lib Dems to get together in a progressive  alliance. But there seems to be a blithe presumption among Labour  supporters that the intrusive role of the state is a matter of little  importance. Perhaps they have been watching too much BBC. The power  and nature of the state is a matter of cardinal importance, all the more so if you are committed to extensive government intervention. Labour's presumption of the state's essential benevolence in their hands did them great damage before. It took 13 long years in the wilderness following their 1979  defeat for renewal to get serious - when Brown in 1992 came to the view, set out in his Charter 88 Sovereignty Lecture, that  Labour had to accept that the state is a “vested interest”. As such, he recognised, it was felt to be a threat, one which Thatcher had exploited in  her popular call for freedom. Labour’s commitments to a Human Rights Act to  protect citizens from the state, and to freedom of information to ensure  the state's accountability, began from the argument Brown set out. Alas, it was  lost in the presumptions of high office.

Today, Labour’s retreat from  that initial commitment to constitutional democracy seems to have penetrated  throughout the party. In his  announcement that he is standing  for the leadership to replace Brown, for example, David Miliband  declared the need for deep “social and economic” change but not for  political reform. Let’s hope it won’t take Labour another ten years in  opposition before they wake up.

At the start of the election  campaign there was a debate between the three candidates for Chancellor.  They were asked if the cuts that would have to be introduced to bring  down the deficit would be more severe than those imposed by Mrs.  Thatcher in 1979. Their answers were “yes”, “yes”, and “yes”. But  whereas her cuts were accompanied by a political assault on prevailing  culture of compromise and inclusion, the cuts which are now about to take  place will be presented as a dose of wartime medicine, a cost we must  all share thanks to Labour’s recklessness, while the most vulnerable, as  spelled out in the Coalition agreement, are protected.There will be job losses alright, as there would have been under Labour. But  the political ideology that will accompany them will be that of coalition not  conviction.

Of course, it may not work. Decades  of economic stasis may lie ahead. George Osborne may do everything he  can to resist EU regulation of hedge-funds, protect big banks, reproduce  ambitions of British exceptionalism and Atlanticism. But unlike  Thatcher he does not have North Sea oil revenues to fund such policies  and he is part of a government seeking from the start to ensure that  cuts do not create lasting unpopularity, the poor are enabled and  manufacturing supported. A different kind of political leadership is being proposed  for the UK at the end of neo-liberalism than we had to endure at its launch thirty years ago.

In his overview of the crisis, The Spectre at the Feast, Andrew Gamble  warned of the threat of a new populist Caeserism. Instead, the far-right  have been comprehensively defeated in the election despite the alleged  softness on immigration of Cameron’s 'progressive conservativism'. A civil war has been taking  place in Britain's main governing party between Tory nationalism and  whig imperialism. Now the latter has turned itself  into what  can be seen as whig Europeanism by allying with the Lib Dems at the same  time as seizing office, the ultimate prize in Tory eyes from whatever  wing of the party you might be. It seems to me that a comprehensive  victory has been achieved and that the Tory hard-right, even with the  support of the Sun, will not find it easy to recover. The question for  Nick Clegg is whether the exercise will leave him as merely the civilising  agent of the Tory party, to be cast aside when the job is done, or  whether he will reform the British state as well.

If not  Thatcherism then what?

The reform of the state is likely to  prove the most significant fault-line in the Coalition. Cameron is a  constitutional conservative who wants to modernise the status quo but  not alter it. Clegg proclaims we have a “rotten system” and wants a  constitutional democracy to replace it completely. The awkward compromise is symbolized by the  commitment to have a referendum on changing the electoral system to the  Alternate Vote system, which is even more majoritarian than  first-past-the-post. To give you a notion of how bad it is, one need  merely say that it was originally dreamt up to assuage Labour’s  right-wing.

There was a small but telling  evidence of the tension in Cameron’s speech outside No 10 on becoming  premier after kissing the Queen’s hand. He wheeled out the usual clichés.

One of the tasks that we clearly have is to rebuild  trust in our political system. Yes, that is about cleaning up expenses,  yes, that's about reforming Parliament and, yes, it's about making sure  people are in control and that the politicians are always their servants  and never their masters.

But suddenly,  towards the end, the new Prime Minister put it differently:

I want us to  build a society with stronger families and stronger communities, and I  want a political system that people can trust and look up to once  again.

“Look up to once again”. Perhaps he was under the influence of having just  got back from kneeling before the monarch. It was surely how in his  waters he would like things to be. Not at all with the people “in  control” - rather that we dock our forelocks and gaze upwards in good  old pre-democratic trust.

Well, it ain’t going to happen. It  is neither a master servant relationship nor a deferential one that is  needed, it is democracy. And democracy demands a democratic  constitution.

Here, the attempt by the agreement  to preserve yet transform could prove a minefield for the coalition –  and a glorious opportunity for those who do indeed seek a Clegg-proclaimed  overthrow of a “rotten system”.

The Coalition  agreement says there will be a commission to consider the 'West Lothian  question'. That is code for the English question -  should there be an English parliament or assembly? The agreement also  commits the Coalition government to examining “the case for a United  Kingdom Sovereignty Bill to make it clear that ultimate authority  remains with Parliament”. That’s an idea to create a constitutional  check, as the German’s have in their constitutional court, on any  extension of EU powers over the UK. But the German court gains its  judicial authority from the basic law – the country’s codified  constitution.The agreement states there will be “a committee to  bring forward proposals for a wholly or mainly elected upper chamber on  the basis of proportional representation”, that means reconstructing  half of the UK's parliament.

Which appears to mean that Nick Clegg will be in  charge of political reform overseeing three seperate major  committees, one looking at the internal national question, a second at  the UK’s sovereignty in Europe and a third examining the nature of  parliament. He is smart enough to join the dots if he wishes, his party  has long called for a new overall settlement, and anyway there are not  enough constitutional experts to go round unless the same faces to bob up in each committee giving separate evidence!

The Tory negotiators doubtless thought they were being clever pushing the issues into newly created cobwebs. We wil see. The decrepit  nature of the old order that Cameron is seeking to refresh rather than replace is  evident in Coalition agreement's assertion that they will legislate for  a fixed term parliament in a way that will “provide for dissolution if  55% or more of the House votes in favour”. This peculiar assertion is  unenforceable. Suppose the Commons votes by a simple majority to  dissolve the government? Will its decision be defied? The Commons can’t  bind itself in this manner, this is what it means to have a merely parliamentary  rather than constitutional sovereignty.

People are right  to see the 55 % proposal as a fix. It is especially inappropriate coming  from a coalition that seeks to preserve majority rather than  proportional voting and whose Conservative partners advocate  winning elections by one vote whatever the proportion!  If they knew  that he was attempting to ensure his Coalition remains in power even if it  loses the confidence of the Commons,  generations of Cameron’s Conservative predecessors would be rotating in  their graves - were it not that their corpses are in as bad a condition  as the British constitution itself.

Not for the first  time, British power is advancing with great élan while its lumps are falling  off.

The Coalition is an  inventive, refreshing response demonstrating the agility and inventiveness of the British political elite. It is progressive on the environment, stopping the  third runway at Heathrow and ruling out further runway expansion at Gatwick and Stansted as  abruptly as it is abolishing ID cards. It signals a welcome  attempt to shift our political culture. One already much scorned by the media,  which is evidence that it is attempting something very positive. We will be a freer people because  of it.

But  it is also an exercise by a narrow and manipulative political class to stay in control. They have protected our liberty but seek to rein it in. They will offer the choice of  a new electoral system but want to limit what we are allowed to consider to only one ridiculous option. They seek to foist an undemocratic  second chamber on us for decades to come (which they will become members of) but say we can't even participate of the deliberations as to how it will be replaced.

But we are a  people who will never again “look up” in trust to our political  system, as David Cameron wishes.

The “Freedom or Great Repeal Bill" the Coalition agreement promises should be linked to a Democracy Bill that  will give the people a genuine choice over how we vote for our politicians and open out a popular, deliberative process for deciding on  the role and composition of the House of Lords as part of a democratic constitution.

The Tory election Manifesto entitled itself Invitation to Join  the Government of Britain. It opens by declaring,

"Real change comes  when the people are inspired and mobilised, when millions of us are  fired up to play a part in the nation’s future. Yes this is ambitious. Yes it is optimistic. But in the end  all the Acts of Parliament, all the new measures, all the new policy  initiatives, are just politicians’ words without you and your  involvement".

To which I say, "Let's get  stuck in". Let's accept the invitation. Let's become part of the Government of Britain! I thought the Manifesto invitation was a cynical exercise in PR designed, in truth, to lower trust in politics even further, if that were possible, when I first saw it. But that was when it was a programme for single party rule. The Coalition alters the chemistry. There really is a party going on. It shouldn't be limited to public-school boys. And, we have an invitation...

Added to which  is the possibility of an entirely new dynamic. When Labour put  through its reforms after 1997, from a Human Rights Act to parliaments in Scotland  and Wales, it was opposed by a backward-looking, uninspired Conservative  opposition that wanted to limit the impact of change as much as  possible. In 2010 the Coalition has set out a programme of  political reforms that are at once radical yet limited, a dangerous  combination. If Labour, already nominally committed to introducing a  written constitution, were to settle on an imaginative new leader, then the  Coalition may find itself up against an opposition that demands greater  democracy and participation, triggering a race for reform.

It is the  reforms themselves, the achievement of constitutional and national  democracy in the framework of the EU, that will be decisive. The forces of authoritarianism in the  parties, the state and the media are still intact. We glimpsed their visage when John Reid and David Blunkett, two of Labour's most repressive Home  Secretaries, denounced any idea of Labour making a coalition with the Liberal  Democrats.

Can the dark  forces they represent be beaten? A generation who have grown up under New  Labour is already organising around demands for fair votes and, in  effect, modern democracy. They mobilised under the purple colour of  suffrage to demand that Nick Clegg not sell-out on PR in the  negotiations. Never before has a modern British political leader been  forced to come out and address a demonstration he didn’t call or help  plan. It’s a new politics indeed when the chant for fair votes takes to  the streets. As Tory nationalism is replaced by the whig Europeanism of  the new Coalition government of Britain, Labour's democratic  collectivism may well prove to be a spent force. But a new kind of  opposition is being organised, democratic republicanism. It has already challenged the Coalition to deliver on its promise of change to the way we are  governed. It is unlikely to be fobbed off with gimmicks designed by the political class to keep control in the hands of.... the political class. If this is the outcome of the Coalition then the demand for democracy will find another home. And the Lib Dems, who for all their boldness, youth, concern for fairness and desire to work in the national interest, stand for reform or they stand for nothing, will be destroyed.

PS: Interesting response from David Marquand

Anthony Barnett

Anthony Barnett

Anthony is the honorary president of openDemocracy

All articles

More in Europe

See all

More from Anthony Barnett

See all