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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New Digital Editor: Serena Kutchinsky

The New Statesman appoints Serena Kutchinsky as Digital Editor.

Serena Kutchinsky is to join the New Statesman as digital editor in September. She will lead the expansion of the New Statesman across a variety of digital platforms.

Serena has over a decade of experience working in digital media and is currently the digital editor of Newsweek Europe. Since she joined the title, traffic to the website has increased by almost 250 per cent. Previously, Serena was the digital editor of Prospect magazine and also the assistant digital editor of the Sunday Times - part of the team which launched the Sunday Times website and tablet editions.

Jason Cowley, New Statesman editor, said: “Serena joins us at a great time for the New Statesman, and, building on the excellent work of recent years, she has just the skills and experience we need to help lead the next stage of our expansion as a print-digital hybrid.”

Serena Kutchinsky said: “I am delighted to be joining the New Statesman team and to have the opportunity to drive forward its digital strategy. The website is already established as the home of free-thinking journalism online in the UK and I look forward to leading our expansion and growing the global readership of this historic title.

In June, the New Statesman website recorded record traffic figures when more than four million unique users read more than 27 million pages. The circulation of the weekly magazine is growing steadily and now stands at 33,400, the highest it has been since the early 1980s.