A "nightmare" experience?

The Tories' economic adviser on the Thatcher years.

Sir Alan Budd, an economic adviser to the Conservatives, warns (as my colleague George Eaton has pointed out) that an incoming Tory government would have to raise taxes, despite the party's attempts to reassure potential voters otherwise.

As luck would have it, Budd pops up in an episode from Adam Curtis's 1992 documentary series Pandora's Box that explores the influence of economic ideas on British politics. Budd reflects on the Thatcher government's dalliance with monetarism in the early 1980s, a policy that led to record unemployment figures and the devastation of Britain's industrial centres, many of which have never recovered:

CURTIS: For some economists who were involved in this story, there is a further question: were their theories used to disguise political policies that would have otherwise been very difficult to implement in Britain?

BUDD: The nightmare I sometimes have, about this whole experience, runs as follows. I was involved in making a number of proposals which were partly at least adopted by the government and put in play by the government. Now, my worry is . . . that there may have been people making the actual policy decisions . . . who never believed for a moment that this was the correct way to bring down inflation.

They did, however, see that it would be a very, very good way to raise unemployment, and raising unemployment was an extremely desirable way of reducing the strength of the working classes -- if you like, that what was engineered there in Marxist terms was a crisis of capitalism which re-created a reserve army of labour and has allowed the capitalists to make high profits ever since.

Now again, I would not say I believe that story, but when I really worry about all this I worry whether that indeed was really what was going on.

You can see that Budd is very cautious about expressing his own views -- but you might wonder, perhaps, how they square with a shadow chancellor who promises to be "tougher than Thatcher", or with the recent New Statesman/ComRes poll in which 34 per cent of Tory parliamentary candidates named Margaret Thatcher as their political hero.

The episode of Pandora's Box is available to view here in full, along with a thoughtful blog post by Curtis himself.

Daniel Trilling is the Editor of New Humanist magazine. He was formerly an Assistant Editor at the New Statesman.

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.