Clegg is wrong: these cuts will be much worse than Thatcher’s

Spending actually rose during Thatcher's premiership.

"There will need to be cuts, cuts that are savage and bold."

Nick Clegg, 19 September 2009

"We're going to do this differently. We're not going to do it the way we did in the 80s."

Nick Clegg, 6 June 2010

Before the election, Nick Clegg made much of his willingness to implement "savage and bold" spending cuts. In an interview with the Spectator, he pledged to reduce the Budget deficit through cuts alone, a position that put him to the right of David Cameron.

Now, with George Osborne's emergency Budget just weeks away, Clegg reassures us that there will be no repeat of the savage cuts of the 1980s, no return to "sink-or-swim economics". But the truth is that the cuts the coalition is planning will be much worse than anything we saw under Margaret Thatcher.

Many on the left, apparently including Clegg, are unaware that, despite her neoliberal ideology, spending actually rose during Thatcher's premiership. While education and health were neglected, spending on defence, law and order and welfare payments (thanks to mass unemployment) continued to grow. Overall, public spending under Thatcher -- from 1978-79 to 1989-90 -- rose by 1.1 per cent a year on average.

And as this IFS chart shows, spending fell in real terms in two years only: 1985-86 and 1988-89.


The same body has forecast that the coalition will have to cut non-ring-fenced Budgets by at least 25 per cent to meet its deficit targets. Clegg's platitudes do nothing to prepare voters for the tightest spending squeeze since the Second World War.

The Lib Dem leader may attempt to redistribute wealth through the tax system, but it remains the case that it is those most reliant on the state -- the poor, the young, the elderly -- who will be hardest hit by the cuts.

But on one point he is right: it's not going to be like the 1980s. It's going to be much worse.

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George Eaton is political editor of the New Statesman.

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Jeremy Corbyn challenged by Labour MPs to sack Ken Livingstone from defence review

Former mayor of London criticised at PLP meeting over comments on 7 July bombings. 

After Jeremy Corbyn's decision to give Labour MPs a free vote over air strikes in Syria, tonight's Parliamentary Labour Party (PLP) meeting was less fractious than it could have been. But one grandee was still moved to declare that the "ferocity" of the attacks on the leader made it the most "uplifting" he had attended.

Margaret Beckett, the former foreign secretary, told the meeting: "We cannot unite the party if the leader's office is determined to divide us." Several MPs said afterwards that many of those who shared Corbyn's opposition to air strikes believed he had mishandled the process by appealing to MPs over the heads of the shadow cabinet and then to members. David Winnick declared that those who favoured military action faced a "shakedown" and deselection by Momentum activists. "It is completely unacceptable. They are a party within a party," he said of the Corbyn-aligned group. The "huge applause" for Hilary Benn, who favours intervention, far outweighed that for the leader, I'm told. 

There was also loud agreement when Jack Dromey condemned Ken Livingstone for blaming Tony Blair's invasion of Iraq for the 7 July 2005 bombings. Along with Angela Smith MP, Dromey demanded that Livingstone be sacked as the co-chair of Labour's defence review. Significantly, Benn said aftewards that he agreed with every word Dromey had said. Corbyn's office has previously said that it is up to the NEC, not the leader, whether the former London mayor holds the position. In reference to 7 July, an aide repeated Corbyn's statement that he preferred to "remember the brilliant words Ken used after 7/7". 

As on previous occasions, MPs complained that the leader failed to answer the questions that were put to him. A shadow minister told me that he "dodged" one on whether he believed the UK should end air strikes against Isis in Iraq. In reference to Syria, a Corbyn aide said afterwards that "There was significant support for the leader. There was a wide debate, with people speaking on both sides of the arguments." After David Cameron's decision to call a vote on air strikes for Wednesday, leaving only a day for debate, the number of Labour MPs backing intervention is likely to fall. One shadow minister told me that as few as 40-50 may back the government, though most expect the total to be closer to the original figure of 99. 

At the end of another remarkable day in Labour's history, a Corbyn aide concluded: "It was always going to be a bumpy ride when you have a leader who was elected by a large number outside parliament but whose support in the PLP is quite limited. There are a small number who find it hard to come to terms with that result."

George Eaton is political editor of the New Statesman.