Thatcherism - Thatcher's Legacy

Thatcher's Legacy

The extent to which one can say 'Thatcherism' has a continuing influence on British political and economic life is unclear. In 2002, Peter Mandelson, a Member of Parliament belonging to the British Labour Party closely associated with Tony Blair, famously declared that "we are all Thatcherites now."

In reference to contemporary British political culture, it could be said that a "post-Thatcherite consensus" exists, especially in regards to economic policy. In the 1980s, the now defunct Social Democratic Party adhered to a "tough and tender" approach in which Thatcherite reforms were coupled with extra welfare provision. Neil Kinnock, leader of the Labour Party from 1983–1992, initiated Labour's rightward shift across the political spectrum by largely concurring with the economic policies of the Thatcher governments. The New Labour governments of Tony Blair and Gordon Brown were described as "neo-Thatcherite" by some, since many of their economic policies mimicked those of Thatcher.

Most of the major British political parties today accept the anti-trade union legislation, privatisations and general free market approach to government that Thatcher's governments installed. No major political party in the UK, at present, is committed to reversing the Thatcher government's reforms of the economy. Such a convergence of policy is one reason that the British electorate perceive few apparent differences in policy between the major political parties.

Moreover, the UK's comparative macroeconomic performance has improved since the implementation of Thatcherite economic policies. Since Thatcher resigned as British Prime Minister in 1990, UK economic growth was on average higher than the other large EU economies (i.e. Germany, France and Italy). Additionally, since the beginning of the 2000s, the UK has also possessed lower unemployment, by comparison with the other big EU economies. Such an enhancement in relative macroeconomic performance is perhaps another reason for the apparent "Blatcherite" economic consensus, which has been present in modern UK politics for a number of years.

Tony Blair wrote in his 2010 autobiography A Journey that "Britain needed the industrial and economic reforms of the Thatcher period". He described Thatcher's efforts as "ideological, sometimes unnecessarily so" while also stating that "much of what she wanted to do in the 1980s was inevitable, a consequence not of ideology but of social and economic change."

On the occasion of the 25th anniversary of Thatcher's 1979 election victory, BBC conducted a survey of opinions which opened with the following comments:

To her supporters, she was a revolutionary figure who transformed Britain's stagnant economy, tamed the unions and re-established the country as a world power.

Together with US presidents Reagan and Bush, she helped bring about the end of the Cold War.

But her 11-year premiership was also marked by social unrest, industrial strife and high unemployment.

Her critics claim British society is still feeling the effect of her divisive economic policies and the culture of greed and selfishness they allegedly promoted.