8 June 1984 Marxism Today

THE CONSERVATIVES enjoyed a great Could Thatcherism have run out of steam? On the contrary, it could have electoral triumph in 1983 but its aftermath acquired a new momentum. But it faces formidable obstacles. was not so sweet. A succession of misfor­ tunes and mistakes have engulfed the Government. Many incidents like the Prime Minister's eye operation or Mark Andrew Gamble Thatcher's Oman contract were trivial in themselves but the way in which they were handled helped create an atmosphere of This Lady's Not for Turning: muddle, indecision, and drift. The greatest single embarrassment the party suffered was the resignation of Cecil Par­ Thatcherism Mark III kinson from the Government in Septem­ ber. This seemed to symbolise the Govern­ changes they sought. In June 1983 they sus on race, law and order, and the family. ment's malaise. Parkinson had emerged as had secured their second term, breaking There are important tensions between one of Thatcher's key ministers and sup­ with the cycle of economic and political these two strands, but it is precisely what porters and was expected to rise high in the failure established since 1959. Their vic­ makes Thatcherism an indispensable con­ new government, perhaps even emerging tory had been aided by the fragmentation cept for analysing recent British politics as Thatcher's eventual successor. of the opposition and had occurred after that so far they have been successfully The epidemic of banana skins has re­ the British economy had suffered its reconciled through the political strategy ceived much comment. Does it mean that deepest postwar slump, and while official and practice of the present Conservative the Government is losing its sense of unemployment still stood above three mil­ leadership, and British politics is being direction and purpose, drifting into the lion. The opportunity for a determined transformed as a result. In the last four kind of inertia and immobility that pre­ government to influence the restructuring years Britain has been moving both to­ vents it responding either wisely or well to not merely of the British economy but of wards a freer, more competitive, more events? Radical Thatcherism, some have British politics and British society open economy and towards a more repres­ suggested, is now dead, killed off by the appeared greater than at any time since the sive, more authoritarian state. very size of the parliamentary majority 1940s. The politics of these two movements are which the Conservatives won in June 1983. complex, sometimes complimentary, The Government, it is argued, is gradually The two strands sometimes contradictory, but what unites becoming a more familiar kind of Con­ The New Right has not been slow to grasp them is the extent to which both depend on servative Government, content to grapple the historic opportunity with which they the success of Thatcherism in transform­ with problems of administration rather have been presented, and which they have ing what is politically possible. The con­ than seeking to change institutions, agen­ worked so hard to earn. They sense that straints which the Keynesian consensus on das, and constraints. the times have never been more favourable economic management, and the liberal It would be remarkable were such a for throwing off the chains of social demo­ consensus on race and law and order, change to have taken place since exactly cracy and constructing a new social and imposed on policy-making and debates the opposite was so widely expected, parti­ economic order in Britain. Many think about policy have been successfully cularly by the Government's most fervent that the Government's chief task should be breached at several keypoints. The toler­ supporters. Victory in June 1983 gave the to assist the consolidation of the new social ance of mass unemployment and mass Thatcherites an unusual opportunity. market consensus on how the economy poverty, the scale of the privatisation prog­ They had always proclaimed the need for should be organised, while continuing to ramme, the extension of police powers and at least two terms in office to introduce the bolster the authoritarian populist consen­ surveillance techniques, the restriction of June 1984 Marxism Today 9 civil liberties mark some of the New more surprised than they at how long of the need to strengthen state powers to Right's greatest successes. radical Thatcherism has persisted. But police the social market economy against Yet remarkable as the gains of the New some began to see signs once more after those who seek to disrupt its working. This Right have been in reconstructing the field June 1983 that Thatcherism was ageing is a major step forward for the creation of a of debate in many areas of policy, few New and becoming blunted in its purpose. Far social market consensus, but it is qualified Right adherents are blind as to how much from a large parliamentary majority ensur­ because the SDP partners in the Alliance, remains to be done. The achievements of ing radical Thatcherism a further lease of the Liberals, remain much more collectiv- Thatcherism measured by policies and by life, it was said to have hastened its collapse ist in their orientation, particularly as specific acts of legislation is much less than by encouraging more open expression of regards the size and purposes of public its rhetoric would suggest. Its real achieve­ opposition within the Conservative Party expenditure. But the greatest danger to a ments have been ideological - shifting the to specific government policies. durable social market consensus still rests focus of political debate, and making a in the Labour Party. Either the Labour chain of future institutional and legislative The broader crusade Party must be brought to accept it, or the changes possible. For these achievements Yet perhaps the terms of this debate are Labour Party must never govern again. In to be consolidated, however, the Govern­ misconceived. The Thatcher government the first case this would mean the Labour ment needs to maintain the momentum of has to be distinguished from the New Party abandoning Clause IV; accepting the change. Otherwise the initiative could be Right, and Thatcherism as an ideology priority given to the control of inflation; lost, and the forces of opposition could from Thatcherism as a set of policies and renouncing protectionism whether in the reassert themselves. decisions. It is after all inconceivable that form of tariffs, quotas or subsidies to the New Right could be completely suc­ shield any sector of the British economy Cautious and calculating cessful in all their aims. No political force from the need to be internationally com­ It is this that makes the signs of govern­ ever is. But success is not to be measured petitive; and accepting a much smaller ment malaise so worrying to its supporters. by the actual achievement of all objectives, state sector, with lower taxation, selective Walter Goldsmith became apoplectic at but rather by the extent to which a signifi­ rather than universal welfare provision, as the beginning of the year about the Prime cant proportion of both the objectives and well as the permanent weakening of trade Minister's refusal to commit herself pub­ the priorities and the means to achieve union organisation and the institutions of licly to reducing taxes. Similarly for many them advanced by a particular group be­ popular sovereignty lessening their ability hardline Conservatives, the Government's come endorsed and shared by other groups to intervene in the outcomes of free mar­ failure to give a stronger lead in the debate within the society. The progress of collec- kets. to restore hanging and the hostility of the tivist and socialist ideas in social policy and No-one really expects the Labour Party Conservative hierarchy to Harvey Proc­ to a lesser extent in economic policy in this to head down this road, which means that tor's motion on immigration at the Black­ century is a striking example of this pro­ if a social market consensus is to be pool Conference, were dismaying. cess, and the New Right constantly refer to established the Labour Party must cease to There have always been many on the it in their writings. be a serious contender for government New Right in favour of bold decisive The real question to ask about Thatch­ office. Otherwise many of the measures of action to break the hold of social democra­ erism, therefore, is how far is it creating the Thatcher government, however long it cy on the economy and of the liberal this kind of broader consensus for its lasts, could at some stage be reversed. The establishment on social policy. The policies and objectives. This is perhaps the Thatcherites are not interested in political Thatcher leadership in spite of its reputa­ hardest question of all to answer about ping-pong. They want policies and priori­ tion has always been cautious and calculat­ contemporary British politics because the ties established that are irreversible, which ing. It has never made many pledges and battle is joined at many separate points so any future government is obliged to con­ has been very careful about the battles it that there is not one but many battles in tinue and dare not reverse, even if it has chosen to fight. The 1983 election progress and assessments of the overall wished to. Council house sales are a good manifesto made few concrete proposals picture are constantly changing. Electoral example. A Labour government might and committed the Government to do little contests and trends of electoral opinion, start building council houses again, but it in particular except govern. In its first the shifting fortunes of the political parties would never seek to repossess the houses term in office there were many examples of and the political leaders are only one that have been sold. If attitudes and be­ areas of policy where the Government had barometer, although often the one paid haviour can be transformed in the institu­ failed to do what it had promised. The most attention. Of critical importance also tions of civil society then the support for most glaring were taxes and public ex­ is what is happening to attitudes and collectivist solutions to economic and so­ penditure. Both had risen. behaviour in schools, factories, offices, cial problems will diminish, and the logic Facts like these prompt the interpreta­ shops, hospitals and a host of other institu­ of privatisation will be asserted in its place. tion that the momentum of Thatcherism tions. Our knowledge of these trends is has started to falter. Apart from those who often unreliable and very incomplete, but The vision of the 1990s dispute that Thatcherism has ever existed, the real long term success or failure of The Thatcherites have a vision of what there have always been many observers Thatcherism will be registered here. they want the country to be like in the who never expected Thatcherism to last 1990s and beyond. Not a country in which indefinitely. They were sceptical of A new consensus the trains run on time but a country in Thatcherism's radical pretensions, and At the public level of parties and elections which no trains run at all. It would centre have always expected it to founder on the it is clear that Thatcherism has had some around the creation of what Raymond reefs of circumstances and administrative success with the open conversion of the Williams has called 'mobile privatism'. It practicalities. Many senior Conservatives leader of the SDP to the principles of the would be a society in which the majority of belong to this camp, and no-one has been social market economy and his acceptance citizens had a property stake through 10 June 1984 Marxism Today

house and share ownership, in which major changes to collective welfare provi­ political or military power and was for unions are weak and markets free and the sion would become politically possible. most purposes obliged to be subservient to state strong. Every individual would be While the Government has been the USA. This was also one of the main self-reliant, forced to sell and compete and floundering about trying to prove itself a messages highlighted by the CND cam­ accumulate. Risk-taking and initiative true friend of the NHS it has also become paign and the Greenham peace camp. would be rewarded, inefficiency and in­ embroiled in conflict over its plans to Cruise was successfully installed but adequacy penalised. All individuals would abolish the metropolitan counties and in­ amidst widespread popular opposition and work for the success of their families and troduce rate-capping to curb local spend­ anxiety about Britain's nuclear policy, and their companies, conflicts of loyalty would ing. These proposals are designed partly to much greater public awareness of the disappear. Such a vision is one of the weaken the Labour Party by abolishing extent to which Britain had become a Thatcherites' greatest strengths since it some of its most important power bases, 'moated aerodrome' for the United States. offers an image of a concrete manner of but their main purpose is to help impose By the end of 1983 the Government living, one which has great and enduring central financial discipline on local spend­ might still have been winning most of its appeal because it is rooted in the universal ing. The danger for the Government is that battles but the costs were getting higher experience of being a commodity owner in they have been widely perceived as a and the opposition more vocal. The accu­ a capitalist society. narrow partisan attack upon councils con­ mulation of banana skins made the Gov­ The success of the Thatcherites in build­ trolled by the main opposition party. They ernment seem accident-prone, drifting ing support for political initiatives that have also aroused extremely strong opposi­ from one crisis to the next. Crisis manage­ advance their vision of how British society tion within the Conservative Party itself, ment, the art of staying afloat, is a skill should develop comes from their ability to primarily because of the constitutional long practised by British governments in portray opposition to their proposals and issues involved and the very serious loss of the past. The Thatcher government had ideas as sectional and self-interested — local autonomy that is being prepared. The always claimed to be doing more than this, against the general interest of all citizens as Thatcherite enthusiasm for the strong however. This is a Government which has consumers and savers; and as embodying state clashes with the preference of many always confidently proclaimed its objec­ ideas and values which are outmoded, or Tories for decentralisation and autonomy tive to be turning the country round, which have been tried and failed. The in local administration. reversing decline, playing for the long solutions of the New Right to the problems term. But no long term strategy or objec­ of Britain's decline have always been pre­ tive was emerging from the first nine sented as both commonsense — the only the Government badly months of its renewed lease on power. realistic path — and in the national interest needs a victory over the Instead the Government seemed to reel — above sectional pressures and express­ miners to overawe all other from one 'affair' to the next; its policies ing the national character. appeared unconnected; and its Leader claimants for subsidies seemed increasingly drawn to the treacher­ ous marshes of foreign diplomacy, begin­ New tensions and government spending ning to enjoy the posturing as a world Towards the end of 1983 this ability of the leader which had beguiled so many of her Thatcherites to identify their programme The growing costs predecessors. with the national interest and widen the The Government has also made the un­ consensus around it was encountering dif­ pleasant discovery that there are limits to ficulties. New points of vulnerability were the extent it can proceed against the The phases of Thatcherism emerging in the Thatcherite project as new unions. The GCHQ affair ended in the Obituary notices for Thatcherism are pre­ struggles broke out. Government securing what it wanted, but mature, however. This became very clear There were open and well publicised at a high political cost. Again the Con­ when the 1984 budget was announced. Up disagreements about the need for further servative Party was split, and widespread to 1984 the Thatcher government had major cuts in public expenditure with public sympathy and support for the trade passed through two distinct phases. The leading supporters of the monetarist finan­ unions involved was generated. A large first was dominated by the monetarist cial strategy like John Biffen arguing for a majority of Conservative MPs while sup­ experiment and the world recession, the period of consolidation. The Government porting the Government's case, were very second by the Falklands war and the very found itself on the defensive over cuts in critical of how the Government had hand­ slow economic recovery. If the unpopular­ social welfare, particularly the NHS, and led the issue. The Government was force­ ity of the Government in the first phase was obliged to give very definite assur­ fully reminded of the political opposition it tends to be exaggerated in retrospect, so ances during the election that the NHS could expect if it attempted open attacks too does its popularity in the second phase. would not but cut. 'The NHS is safe with on trade union rights and the principle of The Government's prospects may have us' became a major election message trade union membership. The right to looked extremely bleak in early 1982, but though it was never widely believed. Pub­ belong to voluntary associations that are it can now be seen that its fortunes had lic anxiety about Tory intentions on the independent of the state remains a popular started to improve, even before the Falk­ NHS, fuelled by inept presentation by the cause. lands war so dramatically altered British Secretary of State, gave the opposition Another major area of recent accidents domestic politics to the Conservatives' parties a major issue on which to attack the and mistakes is foreign policy. The inva­ advantage. The strength of the Govern­ Government. The Government's sensitiv­ sion of Grenada was an unhappy episode ment's position was that it had succeeded ity to charges that it is seeking to run down for the British government because it in defeating all opposition to its central the NHS has revealed important limits to underlined what the success of the Falk- policies. The cabinet opponents of the progress so far made by the New Right lands taskforce had temporarily concealed Thatcher had been either purged or iso­ in creating the climate of opinion in which — that Britain was no longer a major lated, and the Government had won a June 1984 Marxism Today 11

number of important battles against the trade unions. As a result despite the rise in unemployment and the collapse of manu­ facturing output and investment which brought the Government much temporary unpopularity the Government was still able to preserve its image as a Government which was planning for long term recovery and which would persevere with its poli­ cies whatever the short term costs. By 1982 the Thatcher government had already established this image. The sever­ ity of the slump, although unanticipated by the Thatcher cabinet, was used very adroitly to ram home the basic Thatcherite message: 'Things could not be allowed to go on as they were. Thirty years of neglect and misguided policies cannot be put right overnight. But the problems are too se­ rious to be ignored any longer. Everyone knows they have to be tackled.' The Falklands war did not create this message or the Government's reputation for tough­ ness, but it did make many voters believe that the Thatcher government was serious about seeing its policies through. The political message of the Falklands war was that persistence and resolution paid. In the months since the election there has been a gradual fading of the Falklands factor but no great erosion of the Govern­ ment's popularity. Most polls have shown the Conservative Party holding roughly the same percentage of the popular vote, Mrs Thatcher and colleagues with the Tory Party 1983 manifesto slightly over 40%, as it won in June 1983. The Government is attempting to carry Lawson's budget The succession of minor embarrassments through a radical reshaping of British The budget speech and Thatcher's the Government has suffered since the society with a level of popular support that anniversary statement clearly mark the election has done little to shake confidence is lower than any Conservative govern­ opening of a third phase in the life of this in the Government. Among the opposition ment has enjoyed since 1922. It has so far Government. The budget was particularly parties the Alliance has lost momentum succeeded in securing acquiescence and important. No wonder Tory MPs waved and Labour has reclaimed many of the winning support from many groups their order papers and the stock exchange Labour identifiers who deserted the party beyond its own voters, but if either the boomed. Their response was not in appre­ in June 1983. But it is a long way from Government's handling of issues and ciation of the marginal tax adjustments achieving the kind of ascendancy over the events, or successful challenges to its au­ which the budget announced, but rather of Government which it secured in the twelve thority threw doubt on its credibility and its reaffirmation that the Government re­ months following the 1979 election. The competence it could suddenly seem very mained committed to its long term Government is still riding high, confident vulnerable. The Government could not strategy. that it retains the political initiative and afford to give the impression that it was Nigel Lawson's budget was greeted with that no successful challenge will be slowly drifting into impotence and inertia much more rapture than any of Sir Geof­ mounted to its central policies. and becoming mastered by circumstances. frey Howe's; yet it stands on the founda­ One major aim of the 1984 budget and tions Howe created, and Lawson himself Danger signs the Prime Minister's statement issued to was the author of the 1980 Medium Term Yet there are signs of danger for the commemorate her first five years in office, Financial Strategy, the most distinctive Government. Since the election there has has been to dispel this impression, and to innovation of Howe's Chancellorship. been a significant increase in the number rededicate the Government to its original Lawson's reception was so ecstatic partly and range of popular struggles and com- objectives. In defining so clearly what the no doubt because he offered diversion paigns against various aspects of govern­ strategy of the Government is the Thatch- from the Government's numerous other ment policy. The shock of the 1983 result erites are inviting challenges to it and problems, but also because of the flair with has also put an end to further demoralisa­ risking defeat on specific issues. Now that which he presented the budget. Lawson, a tion and fragmentation of the opposition the special aura of the Falklands war has former City editor, sounds as though he and has become the spur for some revita- disappeared the Government is at the understands business and what business lisation and rethinking. Labour not the mercy once more of the vagaries of political wants in a way Howe never managed, but Alliance has strengthened in this period. events. he combines this with an intellectual grasp 12 June 1984 Marxism Today

of the tax system and how it needs reform­ which he was determined to apply regard­ tion of education and health. What is ing, and with very decided views on how less of the evidence that showed the policy noticeable about Lawson's plan is that it the public finances can best be managed in was not working. Lawson's objective is does not envisage major cuts in existing the Conservative interest. more astute politically. He knows that no public expenditures of the kind which In his budget Lawson has charted a economic doctrine will ever be supported would mean termination of whole prog­ strategy for the whole of this parliament, or understood by the bulk of Conservative rammes. one which ties together and makes sense of MPs, still less by Conservative newspaper Lawson has not succumbed to the temp­ many separate aspects of government poli­ proprietors and Conservative voters. tation to make wild ideological gestures cy. What was increasingly appearing as a There has to be a clear political pay-off. about public expenditure because he has disparate collection of policies and issues made a realistic assessment of the current has been made coherent by being located balance of political forces. The main within a grand vision of economic and not a country in which the obstacle to rapid privatisation in the fields political advance. The great strength of the trains run on time but a of education or health is that these are areas Lawson budget is its simplicity. It is a where the social democratic consensus is budget not for one year but for four. It country in which no trains still strongest. The labour movement has proclaims the continuance of the tight run at all to be weakened further before these can be monetary and fiscal stance. The aim is to attacked with success. The greatest need is hold inflation below 5%. Inflation is ex­ Tax cuts provide this. They are probably to ensure that the recovery, now it is under pected to decline slightly during this par­ the single most effective way of boosting way, is not accompanied by any reassertion liament. This commitment to the control confidence in the Government's economic of trade union power. Direct attacks on of inflation within tolerable limits remains management. In his budget Lawson sig­ health and education might well provide absolutely crucial — the central policy nalled that there is an electoral crock of battles which the Government could lose. objective of the Government. Low infla­ gold lying at the end of the rainbow. Like That is why the Government wishes to tion is intended to bring low interest rates, other rainbow treasure, however, it will move against other institutions of social low wage settlements, and a climate of not be won without some pain, and may democracy first, particularly the trade un­ greater certainty about future costs. vanish before the searchers can find it. The ions. Financial stability is expected to lay the central objective of the Government's eco­ ground for a steadily rising prosperity nomic policy in this parliament is to main­ The miners dispute untroubled by major fluctuations or by tain financial stability and secure substan­ The dispute with the miners has a special stop-go policies. Lawson is assuming not a tial tax cuts. But in order to achieve this, importance because the miners are such dramatic but a steady recovery, averaging the financial stability on which the forecast old class enemies and because of the more 2% growth every year for the rest of the of 2% growth rests must not be disturbed. recent memories of 1972 and 1974. Many decade. With such growth the Govern­ Secondly the line on public expenditure parts of the business press have declared ment will seek steadily to reduce its bor­ must be held. Otherwise all the scope for that there is no better way for the Thatcher rowing in real terms and will hold levels of tax cuts could disappear. Government to renew its momentum than public spending constant. If it succeeds in This at once gives new importance to the to win a dispute with the miners. Such an doing this then Lawson predicts that by major conflicts taking place in the public outcome would finally bury what remains 1988 far from a major fiscal crisis the sector. Conservative MPs now have an of the myth of the miners' invincibility, Government will have £13 billion to distri­ additional reason to support the Govern­ and would help convince all other groups bute in tax cuts. ment in its bid to phase out subsidies to of workers that they cannot hope to win in loss-making state industries, to impose struggles against the Government. It The political objective rate-capping, and to find ways of reducing would allow a rapid reduction in the The political calculation is clear. Unem­ the social security, education, and health number of miners and the number of pits ployment is not expected to fall very much, budgets. For the more state spending in and would lead to the break-up of many it might even rise slightly. This does not these areas is held down, the greater the traditional mining communities. It would bother the Government. The unemployed scope for tax cuts. be a major step therefore in the restructur­ are ignored. Lawson hardly referred to ing of the working class that is taking place them in his budget speech. But for those in The battlelines drawn in this recession. The Government is work, still the majority, substantial reduc­ The battlelines have therefore been very evidently keen to seize the opportunity tions in direct or indirect taxes will be clearly drawn. In this new phase that is which the recession has provided to trans­ made available. Tax cuts do not automati­ now beginning, the Thatcher government form permanently British trade union cally buy votes, but tax increases are is seeking to consolidate its broad financial organisation and influence. almost always unpopular. The aim of strategy and to dismantle further some of The Government has accepted the run­ making tax cuts the Government's central the major institutions of the public sector. down and eventual disappearance of most economic objective is to provide tangible This will involve it a number of crucial of the jobs in many traditional manufactur­ evidence that the economy is improving, political battles. The stakes are pitched ing industries. Thatcherism's vision of that it is being well managed, that Britain high, but the battlefield has been chosen Britain's economic recovery does not in­ at last really is on the right track. carefully, and the Government is confident clude a revitalisation of the traditional Howe made the control of inflation the it can win. Its ambitions are relatively manufacturing base. That has been writ­ Government's chief objective. This modest. The radical options are being left ten off. But it takes a considerable time to opened him to the charge of being a for the moment to the intellectual skir­ allow the old manufacturing base and the doctrinaire monetarist, wedded to an intel­ mishers of the IEA, like Patrick Minford working class which depends on it to lectual theory of how the economy worked with his proposals for complete privatisa­ wither. The British labour movement re- June 1984 Marxism Today 13 mains a significant adversary and the decisions appear realistic and common strategy. Just as the 1925 and the 1926 greatest political danger for the Thatcher - sense and inescapable. But should the scale miners' strikes were the direct outcome of ite strategy is that the pains of transition to of resistance in any particular struggle the return to the gold standard in 1925, so the new social and economic order of the prove too great, if the strike looked like the 1984 miners' strike is the direct out­ 1990s may catapult into office a radical spreading and uniting a broad coalition of come of the financial strategy that the 1984 Labour administration pledged to inter­ workers against the Government, then the budget reaffirmed. rupt, slow down, and transform the cur­ cabinet might well authorise a climbdown A government victory in the miners' rent restructuring. That is why the miners' by the NCB. It would be embarrassing for strike would mean that the privatisation strike assumes such importance. After a ministers and they might well lose the programme which is already of consider­ few more years, if the business logic of services of Ian MacGregor, but it would able dimensions could be extended to MacGregor is pursued, the miners will no not be catastrophic. embrace all state enterprises. For if all longer be numerous or powerful enough to state industries can be made profitable offer significant resistance. Needing a victory commercial concerns, all can be sold, and The Thatcher government and its allies The problem the Government faces is there are now vocal lobbies urging just know this very well. The decision to however not so simple when the miners' that. If the Thatcher government were to appoint MacGregor was a decision to dispute is placed in the context of Nigel stay in office until the end of the century accelerate the contraction of the mining Lawson's budget. The Government badly very few productive assets would remain in industry and eliminate the subsidies, and needs a victory over the miners to lend public hands. to challenge the miners to contest the credibility to the overall strategy the Chan­ The great advantage which the Govern­ decision. The actual cost of keeping more cellor has laid out and to overawe all other ment enjoys in the miners' strike is that it is pits open would not be enormous, but the claimants for subsidies and higher govern­ fighting on ground which it has prepared political cost would be much higher. What ment spending. If the miners were seen to more thoroughly than any other. Indust­ the Government seeks is a symbolic be successful the Government might face rial Luddism and revolutionary extremism affirmation that the logic of restructuring an avalanche of claims. The Government are portrayed as the enemies that the whole the economy to make all sectors interna­ has sought consistently to reduce the ex­ community, not merely the Government tionally competitive cannot be resisted by tent to which economic decisions become has to fight. The Government may fear the any group of workers. Nevertheless the political ones. But this strategy of disen­ industrial power of the miners, but it Government treads carefully. It has gagement depends on all economic agents calculates that so long as the issue can be avoided involving itself too closely in par­ accepting the sanctity and integrity of the displaced from the industrial sphere into ticular managerial decisions. It merely sets financial strategy. As so often before, the the political sphere, it can be treated as a the framework in which tough managerial financial policy is the key to the political problem of law and order— the defence of 14 June 1984 Marxism Today

the right to work against mob picket Such arguments apply with equal force Rates may be a highly visible and highly violence — and all the powers of the on the national level. So long as the unpopular tax, and if the Government authoritarian populist consensus can then Thatcher government accords overriding could have found a way of abolishing rates be enlisted on the Government's side. The priority to maintaining its financial at the same time that they imposed finan­ public can be rallied much more easily in strategy and reducing the rates of personal cial discipline on local authorities they defence of social order than in defence of and corporate taxation, then it is obliged to might have secured greater political sup­ market order. The skill of Thatcherism is find ways of exercising detailed control port. But they could not. As a result they to present the two as the same. The over all its expenditure. Local government have created broad-based opposition, Government seeks to mobilise support spending remains one of the major rooted in local communities. against the miners, so that were the strike loopholes in the control system erected The Government's difficulties over its to become a long and bitter one, the since 1975. The new centralising legisla­ bills to control the rates and abolish the majority of the public will not condemn tion is a blunt instrument, but no-one metropolitan councils are reminiscent of the Government for being heartless and doubts it will be crudely effective if it can the GCHQ incident. The Government doctrinaire, but will condemn the miners be implemented. imposed its will in the end but at consider­ for obstinacy and bringing hardship on The problem is whether it can be im­ able political cost. It became isolated and themselves. plemented . The Government so far has not appeared as the arm of the alien and even convinced its own supporters that its arbitrary state power rather than the in­ Ratecapping and all that policies for local government are either strument of national consensus. The Gov­ The Government is on rather weak ground sensible or justifiable. Large electoral ma­ ernment cannot afford too many GCHQs if in its other major struggle — its bid to jorities disapprove of the abolition of the the momentum of Thatcherism is to be control the spending of local councils. The GLC. The same is likely to be true for maintained. Thatcherism will be blunted Thatcherite logic is impeccable. Why rate-capping. The Government's oppo­ if the numerous campaigns and stuggles should local businesses pay rates when nents have succeeded in portraying the now in progress succeed in countering the they lack direct representation on local Government as pursuing a narrow doctri­ appeal to commonsense and the national councils or any veto on spending deci­ naire policy, one which will centralise interest which Thatcherism has made so sions? Local authority spending has be­ power still further in Whitehall. The bills successfully in the past. The logic of the come too redistributive, say the Thatcher- are increasingly perceived as attacks on financial policy is extremely powerful and ites, because many of those who elect the local communities and the ability of local numerous institutions and groups have councils have no incentive to be prudent or people to decide matters for themselves. already adapted to it. But it is not all- responsible; they receive benefits but do Save our Services has proved a more powerful. It can be resisted, and the ideo­ not pay rates. effective slogan than Lower our Rates. logical power of Thatcherism pierced. •