Inequality before and after Thatcher: what really happened

Norman Lamont is wrong to suggest that inequality increased "much more" under Labour. It surged under Thatcher and rose slightly under Blair and Brown.

On last night's edition of Newsnight, Norman Lamont declared that while inequality "increased under Mrs Thatcher" it increased "much, much more" under Tony Blair and Gordon Brown. It's a common claim but as the IFS graph below shows, it isn't true. It was during the Thatcher years that inequality surged before stabilising under Major and rising slightly under Labour. Under a Conservative government, less committed to redistribution, the increase would almost certainly have been far worse (not least due to the global forces pulling the rich and poor apart). 

Inequality in the UK 1979 to 2007-08

But Blair and Brown cannot be excused for their failure. Confronted by the widening gap between rich and poor, Blair would glibly remark that he didn’t go into politics "to make sure that David Beckham earns less money". Gordon Brown was less intensely relaxed about the "filthy rich" but doubted whether it was possible to significantly reduce inequality in a country that he continued to view as conservative. By contrast, Ed Miliband declared in his speech at last year's Labour conference, "I will never accept an economy where the gap between rich and poor just grows wider and wider. In one nation, in my faith, inequality matters." Whether he is able to fulfil his ambition of building a more equal society (assuming the voters give him a chance) will do much to determine whether he will prove to be a transformer in the mould of Thatcher or Labour's Ted Heath. 

A statue of Margaret Thatcher stands in the Guildhall Art Gallery in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Labour picks Gillian Troughton to fight Copeland by-election

Troughton, a Copeland councillor, was critical of Jeremy Corbyn during the summer leadership race. 

Labour has picked Gillian Troughton, pro-nuclear former doctor to fight the Copeland by-election.

After accepting the nomination, in an email shared online, Troughton said she was "pro-nuclear; no ifs, no buts", and that her husband worked in the nuclear supply chain. She is also a local councillor and a practising Christian. 

She described the election as a choice about the NHS: "I have been part of the campaign against the proposed cuts to A&E and the maternity wing because I know that our community needs this service."

Like Jamie Reed, the current MP for Copeland, Troughton is a critic of Jeremy Corbyn and backed Owen Smith in the 2016 Labour leadership campaign.

She also campaigned to remain in the EU, and now must win over a voting population that voted 62 per cent to leave - the strongest Eurosceptic vote in Cumbria. 

Her victory is a symbolic defeat for the Labour leadership, as she beat Corbyn supporter Rachel Holliday, also a councillor with ties to the nuclear industry and the NHS. 

However, the decision to pick a non-Corbynite may be a relief for those within the Labour leader's camp who worry about "owning" a possible by-election defeat. 

Corbyn said of the selection: “I am delighted that Gillian Troughton will be Labour’s candidate for the Copeland by-election. 

“Gillian is a local councillor with a strong track record of getting things done for her community. She has campaigned tirelessly to maintain local hospital services. 

“As a St John’s blue light ambulance driver, Gillian has seen first-hand the extent of the crisis caused by this Conservative government, which has chosen to fund tax cuts for the wealthiest instead of our health service. 

“I am proud that Labour has selected a local candidate with such dedication to her community.”

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.