Thatcher’s greatest legacy: the rewriting of the seventies

Several months of strikes in 1978 and 1979 have come to stand for a whole decade. Britain was not a "failed state".

Since the death of Margaret Thatcher last week, it has been hard to find much agreement. Countless articles and hours of footage from the last few days reveal only two real areas of consensus: she was a divisive figure who would have enjoyed her dominance of a week’s newscycle and, regardless of your political persuasions, everyone knew Britain needed to change from the mire of the 1970s. The first belief is irrefutable; the second far less so. 

According to almost all reports, the 1970s can be condensed into one single event: the "winter of discontent." Several months of strikes in 1978 and 1979 have become the symbol of a whole decade of British politics and a clear representation of the gloomy years of the greys; Heath, Wilson Mark II and Callaghan. Politicians, journalists and citizens all recall, with various anecdotes, how awful those years were. Simon Jenkins succinctly summed up the consensus opinion:

"Britain in the 1960s and 70s was, in European terms, a failed state. Ted Heath felt the country had become ungovernable. The word ‘strike’ was in every page of every newspaper almost every day. Public services really were collapsing. This country really was a mess."

The 1970s is rarely visited in detail in discussions of Thatcher. Graham Stewart did briefly in the Sunday Telegraph under the banner, "Never Forget The Chaos Of Life Before Thatcher." Stewart admits it is wrong to focus solely on the winter of 1978 to summarise the decade, but he still concludes that there was an "overriding sense...of living in a country that had lost its way." His evidence? A quote from a newspaper in 1977 and a lyric from the Sex Pistols.

Stewart, like the rest of us, is a victim to one of Thatcher’s greatest legacies: a rewriting of the nation’s memory that makes the 1970s appear so monumentally dire that if Thatcher hadn’t have come along, Britain would have been the Greece of the 1980s. As the historian Nick Tiratsoo puts it: "We have come to see the decade in a way which magnifies the bad and neglects the good."

Re-examining the 1970s entails looking at three key areas: Thatcher’s popularity compared to Callaghan’s, the state of the economy and the actual effect strikes and the unions had on the country.

James Callaghan, the only individual to ever hold the four Great Offices of State, may have claimed he would probably be remembered as the worst Prime Minister in 200 years, but he was consistently viewed as more popular than Thatcher. Throughout the late 1970s, Thatcher regularly trailed Callaghan in the polls and a certain number still felt the party would fare better electorally if they had Edward Heath back in charge. While the Conservatives were polling above Labour by around 18 points at the end of 1976, by the end of 1978, before the "winter of discontent,” Labour had a slim lead of around two to three points. Labour held the Berwick and East Lothian constituency with an increased majority on 26 October1978, a feat difficult for any government nearly five years into its administration.

Furthermore, it would be wrong to suggest Thatcher’s election in 1979 represented a dramatic shift; the Conservative manifesto of that year was incredibly cautious. Her privatisation ideas were limited, and the proposals outlined to sell back shares in aerospace, shipbuilding and national freight operations were merely a continuation of trademark Conservative policy. Furthermore, Callaghan himself knew that there needed to be changes to the pervading consensus: his 1976 speech at the Labour party conference signaled an end to the government attempting to spend its way out of unemployment. Callaghan, as ever, is a figure who deserves his own rewriting.

Callaghan is often seen as a mess when it came to the economy: he was moved to the Home Office in 1967 after the devaluation of the pound and his tenure as prime minister is seen as similarly calamitous. Still, the 1970s was not necessarily a complete failure in economic terms. While the $3.9bn loan from the IMF in 1976 was the largest amount ever requested, it did calm the British economy and allow Denis Healy to reduce public expenditure from 44.9 per cent of GDP in 1974 to 42.8 per cent in 1979, a level it remained at until the 1990s. With the economic outlook helped by new revenue from North Sea oil, the UK didn’t need all of the IMF fund and inflation, so often argued to be ridiculously high throughout the decade, slumped from 24 per cent in 1975 to just 8 per cent in 1978.

Furthermore, while the economy throughout the decade may have not been booming, it is wrong to lay the blame at the feet of the Conservative and Labour governments of the 1970s. The economic downturn was a global one and beyond the control of successive prime ministers. US unemployment continued to rise throughout the period and Japan’s growth shrunk from an annual average of 10.6 per cent in the 1960s to a lowly 4.7 per cent in the 1970s. Britain was not the sick man of Europe or even the world, but simply another economy, once dominant, struggling. 

Finally, the trade unions, so long vilified as selfish, controlling and debilitating, are perhaps the greatest victims of Thatcherite revisionism. Historians of the 1970s have forgotten that in a strike, there are two sides: the unions and the employers. Hugh Parker, a former director at McKinsey’s during the 1970s in London, said, "Too many managers identify themselves with the interests of the managed. They stay aloof – at arm’s length from the workers.”

In most situations, the trade unions, in the face of difficult and unrelenting managers, attempted to avoid strikes. The facts back this theory up. During the 1970s, accidents and certified illnesses accounted for roughly 320 million lost days a year, thirty times more than those caused by industrial disputes. Between 1971 and 1973, according once again to historian Nick Tiratsoo, "as many as 98% of manufacturing establishments were without disputes at all." Tiratsoo continues, "Britain, it seems, had several troubled industries – coal, the docks and cars – rather than an all-embracing industrial relations pathology."

In 1979, when James Callaghan handed the keys over to Thatcher, inflation was lower, unemployment was falling and the balance of payments was strong. Wilson and Callaghan maneouvered the country through a difficult period – worldwide – of higher inflation and slower growth. That is what should be remembered. Unfortunately, the "winter of discontent" has created a fog over our collective memory of the 1970s, aided and abetted by Thatcherite propaganda that continues today from journalists and politicians who find it easier to reach for a generalisation than a history book. 

A portrait of Margaret Thatcher is pictured in the 'Margaret Thatcher Room' at the Conservative Party headquarters. Photograph: Getty Images.

Kiran Moodley is a freelance journalist at CNBC who has written for GQ, the Atlantic, PBS NewsHour and The Daily Beast.

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Metro mayors can help Labour return to government

Labour champions in the new city regions can help their party at the national level too.

2017 will mark the inaugural elections of directly-elected metro mayors across England. In all cases, these mayor and cabinet combined authorities are situated in Labour heartlands, and as such Labour should look confidently at winning the whole slate.

Beyond the good press winning again will generate, these offices provide an avenue for Labour to showcase good governance, and imperatively, provide vocal opposition to the constraints of local government by Tory cuts.

The introduction of the Mayor of London in 2000 has provided a blueprint for how the media can provide a platform for media-friendly leadership. It has also demonstrated the ease that the office allows for attribution of successes to that individual and party – or misappropriated in context of Boris Bikes and to a lesser extent the London Olympics.

While without the same extent of the powers of the sui generis mayor of the capital, the prospect of additional metro-mayors provide an opportunity for replicating these successes while providing experience for Labour big-hitters to develop themselves in government. This opportunity hasn’t gone unnoticed, and after Sadiq Khan’s victory in London has shown that the role can grow beyond the limitations – perceived or otherwise - of the Corbyn shadow cabinet while strengthening team Labour’s credibility by actually being in power.

Shadow Health Secretary and former leadership candidate Andy Burnham’s announcement last week for Greater Manchester was the first big hitter to make his intention known. The rising star of Luciana Berger, another member of Labour’s health team, is known to be considering a run in the Liverpool City Region. Could we also see them joined by the juggernaut of Liam Byrne in the West Midlands, or next-generation Catherine McKinnell in the North East?

If we can get a pantheon of champions elected across these city regions, to what extent can this have an influence on national elections? These new metro areas represent around 11.5 million people, rising to over 20 million if you include Sadiq’s Greater London. While no doubt that is an impressive audience that our Labour pantheon are able to demonstrate leadership to, there are limitations. 80 of the 94 existing Westminster seats who are covered under the jurisdiction of the new metro-mayors are already Labour seats. While imperative to solidify our current base for any potential further electoral decline, in order to maximise the impact that this team can have on Labour’s resurgence there needs to be visibility beyond residents.

The impact of business is one example where such influence can be extended. Andy Burnham for example has outlined his case to make Greater Manchester the creative capital of the UK. According to the ONS about 150,000 people commute into Greater Manchester, which is two constituency’s worth of people that can be directly influenced by the Mayor of Greater Manchester.

Despite these calculations and similar ones that can be made in other city-regions, the real opportunity with selecting the right Labour candidates is the media impact these champion mayors can make on the national debate. This projects the influence from the relatively-safe Labour regions across the country. This is particularly important to press the blame of any tightening of belts in local fiscal policy on the national Tory government’s cuts. We need individuals who have characteristics of cabinet-level experience, inspiring leadership, high profile campaigning experience and tough talking opposition credentials to support the national party leadership put the Tory’s on the narrative back foot.

That is not to say there are not fine local council leaders and technocrats who’s experience and governance experience at vital to Labour producing local successes. But the media don’t really care who number two is, and these individuals are best serving the national agenda for the party if they support A-listers who can shine a bright spotlight on our successes and Tory mismanagement.

If Jeremy Corbyn and the party are able to topple the Conservatives come next election, then all the better that we have a diverse team playing their part both on the front bench and in the pantheon of metro-mayors. If despite our best efforts Jeremy’s leadership falls short, then we will have experienced leaders in waiting who have been able to afford some distance from the front-bench, untainted and able to take the party’s plan B forward.