The left struggled to understand Margaret Thatcher. When it finally did, the result was New Labour

The New Statesman was at the forefront of anti-Thatcher campaigning. But in common with much of the left, it never properly understood the forces she unleashed.

In this week's centenary edition of the magazine, we republish a 1983 article about Margaret Thatcher by Angela Carter. Scornful and contemptuous, it exemplifies the way in which many liberal-left intellectuals and artists wrote about Thatcher, whom they despised like no other British politician of modern times.

They despised the way she spoke (the theatre director Jonathan Miller, the embodiment of champagne socialism, described her voice as sounding like a “perfumed fart”) and dressed. They despised her petit bourgeois, lower-middle class origins and arriviste aspirations. They despised what they considered to be her small shopkeeper’s mentality (the third album by the Eighties pop band the Blow Monkeys was titled She Was Only a Grocer’s Daughter – note the scorn of that adverb “only”) and hectoring manner. They despised her Victorian moralism and reluctance, as Britain’s first female prime minister, to call herself a feminist. They despised her audacity, conviction (“this lady is not for turning”) and resolution.

She was considered cruel and compassionless. The power of her ideas helped first to split and then slowly, painfully, to reform the Labour Party. She took on and fatally weakened the unions. She sought to remake the British nation through conflict (on her watch, there were prolonged strikes and inner city and poll tax riots). And yet, she kept winning general elections.

The New Statesman was at the forefront of anti-Thatcher campaigning. But in common with much of the left, it never properly understood her. Or, more accurately, it did not begin to understand her until too late and then, when it did, New Labour was the result.

The word “Thatcherism” – the doctrine combining economic liberalism and social conservatism – was first used in Marxism Today, the journal of the old revisionist wing of the Communist Party of Great Britain edited by Martin Jacques from 1977 until its closure in 1991. More than any other publication, MT offered a consistent and penetrating analysis of the Thatcher project. Jacques and Stuart Hall and Eric Hobsbawm never underestimated or scorned Thatcher. Instead, they understood from the beginning that we had entered a quite new era. In an interview with the NS last year, Hall said that Thatcher was what Hegel called a “historical individual”: her politics and contradictions “instance or concretise in one life or career much wider forces that are in play”.

As early as January 1979, before Thatcher defeated an exhausted Labour Party to become Prime Minister for the first time, Hall published an essay in MT, “The Great Moving Right Show”. It began: “No one seriously concerned with political strategies can afford to ignore the swing to the right.” What was happening, he said, “no longer looked like a temporary swing”.

Thatcher would not have agreed – she was a conservative after all – but there was something Bolshevik in her method and in the way a small group of highly motivated ideologues, several of them disaffected former Marxists, emerged from the margins to seize control of the Conservative Party. As Thatcher saw it, Britain had been enfeebled and impoverished by socialism. The welfare state had created a culture of “dependency”. The unions had for too long used their power to resist necessary labour market reforms. The nationalised industries were failing. Full employment was a chimera; instead, there should be a “natural level of unemployment”.

But the project was never as clear cut as some would like to have it. Although the health service and schools were deprived of resources throughout the Thatcher years and although public spending fell from 45.1 per cent of GDP in 1978-79 to 39.2 per cent in 1989-90, it in fact rose in real-terms in every year except 1985-86 and 1988-89 (largely because of increases in social security spending owing to high unemployment). And she raised as well as cut taxes: in his 1979 Budget, Geoffrey Howe reduced the top rate of income tax from 83 to 60 per cent (it was cut to 40 per cent by Nigel Lawson in his 1988 Budget) but raised the standard rate of VAT from 8 to 15 per cent. In 1981, Howe raised taxes and cut public spending in the face of fierce resistance from leading economists, but unlike George Osborne today, he had the flexibility simultaneously to cut spending and lower interest rates.

No one would doubt today that Thatcherism was profoundly disruptive, a counter-revolution against the postwar Keynesian consensus. It had real victims, caused waves of popular anger, and has left the Tories all but unelectable across large parts of the country. But in truth, that consensus was already unravelling before she came to power, undone by persistently high inflation, the oil price shocks of the early Seventies, deindustrialisation and union unrest.

With Thatcher’s death, at the age of 87, we are at end of an era in every sense. The financial crisis had already marked the end of three decades of excessive “financialisation” and free market hegemony, since when recession and mass unemployment have returned to Europe as the continent has embraced collective austerity.

“Economics are the method; the object is to change the soul,” Margaret Thatcher once said, a saying of hers I like very much and with which no Marxist would disagree. But the paradox of this strange and compelling woman was that her economic liberalism was at odds with her social conservatism: the destructive, amoral market forces she helped unleash and channel undermined her most cherished values. As a religious pessimist, a believer in original sin, she deplored the culture of hedonistic individualism that flourished in the 1980s and beyond. She naively believed the family, private property, the church and ancient institutions would help serve as bulwarks against permissiveness and chaos. She believed the fall of the Soviet Union and the defeat of communism would herald a new order of peace and free market prosperity under the rule of law. It did not happen. It could never have happened. 

Margaret Thatcher with Tony Blair. Photo: Getty

Jason Cowley is editor of the New Statesman. He has been the editor of Granta, a senior editor at the Observer and a staff writer at the Times.

This article first appeared in the 12 April 2013 issue of the New Statesman, Centenary Special Issue

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Harriet Harman: “Theresa May is a woman, but she is no sister”

The former deputy leader of the Labour Party urged women to unite across the divided party.

The day-long women's conference is usually the friendliest place at Labour party conference. Not only does it have a creche and a very clear emphasis on accessibility, but everybody who attends starts from a place of fundamental agreement before the sessions have even begun. For that reason, it's often ignored by political hacks in search of a juicy splits story (especially since it takes place on Saturday, before the "real" conference action really gets underway). But with the party divided and the abuse of women on and off social media a big concern, there was a lot to say.

This year, kick off was delayed because of the announcement of Jeremy Corbyn's victory in the leadership election. The cheer for the renewed leader in the packed women's conference hall was far bigger than that in the main hall, although not everybody was clapping. After a sombre tribute to the murdered Labour MP and former chair of the Labour Women's Network Jo Cox, Harriet Harman took to the stage.

As a long-time campaigner for women's rights, veteran MP and former deputy leader of the Labour Party, Harman is always popular with women's conference - even if her position on the current leadership and her status as a former Blairite minister places her out of sync with some of the audience. Rather than merely introducing the first speaker as the agenda suggested, Harman took the opportunity to make a coded dig at Corbyn by doing a little opposition of her own.

"Theresa May is a woman, but she is no sister," she declared, going on to describe the way that May, as shadow spokesperson for women and equalities under William Hague, had been a "drag anchor" on Harman's own efforts to enact pro-women reforms while Labour were in government. The Thatcher comparison for May is ubiquitous already, but Harman made it specific, saying that like Thatcher, Theresa May is a woman prime minister who is no friend to women.

Harman then turned her attention to internal Labour party affairs, reassuring the assembled women that a divided party didn't have to mean that no advances could be made. She gestured towards the turmoil in Labour in the 1980s, saying that "no matter what positions women were taking elsewhere in the party, we worked together for progress". Her intervention chimes with the recent moves by high profile former frontbenchers like Chuka Umunna and Yvette Cooper to seek select committee positions, and Andy Burnham's campaign to become mayor of Greater Manchester.

Harman's message to women's conference was clear: the time for opposition to Corbyn is over now - we have to live with this leadership, but we can't let the equalities legacy of the Blair years be subsumed in the meantime. She ended by saying that "we have many leaders in the Labour party," pointing to Jess Phillips, the chair of the women's PLP, and Angela Rayner, shadow minister for education, women and equalities. Like Burnham, Cooper et al, Harman has clearly decided that Corbyn can't be unseated, so ways must be found to work around him.

Rayner followed Harman onto the stage. As one of Corbyn's shadow ministerial team, Rayner is far from in agreement with Harman on everything, and rather than speak about any specific policy aims, she addressed women's conference on the subject of her personal journey to the front bench. She described how her mother was "born on the largest council estate in Europe and was one of twelve children" and "never felt loved and didn’t know how to love, because hugs, cuddles and any signs of affection just wasn’t the norm". She went on to say "mum won't mind me saying this - to this day she cannot read and write". Her mother was in the audience, attending her first Labour conference.

As a former care worker who became a mother herself when she was just 16, Rayner is a rarity at the top of Labour politics. She told the Guardian in 2012 that she is used to being underestimated because of her youth, her gender and her northern accent: "I'm a pretty young woman, lots of red hair, and everyone expects me to be stupid when I walk into a meeting for the first time. I'm not stupid and most people know that now, but I still like to be underestimated because it gives me an edge. It gives me a bit of stealth."

The mass shadow cabinet resignations in June propelled Rayner to the top sooner than an MP only elected in 2015 might have expected, and she has yet to really prove her mettle on the grind of parliamentary opposition and policy detail. But if Labour is ever to win back the seats in the north where Ukip and Brexit are now strong, it's the likes of Rayner that will do it. As Harriet Harman herself shows, the women and equalities brief is a good place to start - for even in turbulent, divided times for Labour, women's conference is still a place where people can find common ground.

Caroline Crampton is assistant editor of the New Statesman.