The 1970s are back, but we're still waiting for our Thatcher moment

Telegraph

7 hours ago

The 1970s, it seems, are back. A scorching summer and a teetering economy evoke memories of 50 years ago. A Labour Chancellor mulls how best to soak the rich; beyond Westminster, state authority crumbles.
Rachel Reeves has not yet gone to the IMF like Denis Healey did. But there is a sense on the British Right that the UK is facing a fresh '1976 moment' as the old unsustainable order gives way to something new.
Both the Tories and Reform are keen to embrace that narrative. Jim Callaghan's remark that 'If I were a young man, I would emigrate' is reflective of the mood of many voters today. 'Broken' is the most commonly used word to describe the country in focus groups. Yet while Kemi Badenoch and Nigel Farage agree that Britain in 2025 faces real national decline, they differ on who will be its saviour come 2029.
In the fight for the future, a proxy war is being fought over the past. A century after Margaret Thatcher's birth, both Badenoch and Farage claim her legacy for their respective parties. The Tory leader points to Thatcher's seriousness and sense of purpose; the upcoming party conference will stress her Conservative core. Farage meanwhile is urging think tanks to work with him, publicly praising 'the great revolution that took place from 1979' as a lodestar for a Reform-led government.
It is not yet clear who will win out in the battle of the Right. But there are encouraging signs that members of both parties appreciate the scale of the problems facing Britain. Some within Reform are keen to look Stateside; one senior figure dined with a member of the Trump transition team last week.
Among Conservatives, there is a keen sense of 'getting things right next time.' One Tory MP likens the experience of the last parliament to that of Ted Heath's government. Past failure will, hopefully, inform future success.
Both are correct to recognise that preparation and a sense of purpose will be key to the success of the next government of the Right. If national decline is to be reversed, then a clear plan is essential to succeed. An example of this is offered by the Coalition's school reforms.
Consultation had been done in opposition; relevant bills drafted before entering office, ensuring last reform. A similar body of work will be necessary if issues such as Britain's creaking asylum system are to be overhauled in the next parliament. Badenoch has handed policy review to Alex Burghart, who is regularly spotted around parliament clutching a copy of Keith Joseph's The Right Approach. Zia Yusuf will perform a similar role for Reform, working with Simon Marcus, the party's head of research.
Yet planning alone will not be sufficient. As the unhappy experience of this current government shows, ministers are always susceptible to being blown off course by events. Having an intellectual core will be necessary for continued renewal in office. Charles Moore's magisterial biography of Thatcher notes how her policy-making was an iterative process. Constant memos were circulated in written form. This ensured the detail of any policy, not merely the theory, was subject to scrutiny prior to implementation.
A similar robustness could help the Right avoid many of the stupid fights that have plagued more recent leaders. Thatcher's success was built on a shrewd sense of her electoral coalition. In the 1980s, this was achieved by peeling off a sufficient chunk of the old working class vote with houses, shares and economic prosperity. In the 2020s, new loyalties must be affirmed. For the Right, this will likely include marrying 'Thatcher's children' – economic winners of her era – with those who lost out in her era. Strikingly, Reform is now targeting ex-coal mining areas like South Wales and the East Midlands.
To bind this coalition together, a new economic model will likely have to be forged. 'Culture wars are not enough' admits one Tory frontbencher. Farage has shown a willingness to nationalise British Steel and Thames Water; members of Badenoch's team are critical of Beijing deliberately crippling Western industries.
Both leaders appreciate that the sickness benefits bill – set to rise to £100bn by 2030 – is completely unsustainable. Both will have to find a way to sell welfare reform and palatable spending cuts to an electorate that is wary of both. 'We all know the state needs to do less,' says one former Tory minister. 'But where does the axe fall? Thatcher barely touched the welfare state.' She chose to privatise state liabilities; liberalising state commitments on areas like Net Zero could offer the equivalent answer in 2029.
Opinions differ on the Right as to whether the challenges facing Britain now are greater than those 50 years ago. Back then, there was union militancy, the Soviet threat and IRA terror; now there is a demographic time bomb, a febrile electorate and two decades of stagnant growth. In looking to the future, the spirit, if not the means, of Thatcher will animate those wrestling to resolve the nation's problems – regardless of which party they are in.