‘I’ Newspaper: Thatcher Wanted to Abolished Welfare State and NHS Even After Cabinet ‘Riot’

The I newspaper on Friday (25th November 2016) carried a report that recently released cabinet papers reveal that Thatcher and Geoffrey Howe continued to plan for the abolition of the welfare state and the privatisation of the NHS even after the rest of the cabinet violently and vehemently rejected her plans. Here’s what the paper wrote

Thatcher’s plan to abolish the welfare state outraged MPs

The Prime Minister tried to advance incendiary proposals despite uproar in Cabinet. By Cahal Milmo.

Margaret Thatcher and her Chancellor Geoffrey Howe secretly sought to breathe new life into incendiary plans to dismantle the welfare state even after they had been defeated in a cabinet “riot”, newly released files show.

Shortly after she came to power in 1979, Mrs Thatcher instructed a Whitehall think-tank to put forward proposals on how to shake up long-term public spending based on the free market principles she spent her 11 years in office seeking to apply.

But what the Central Policy Review Staff (CPRS) put forward in 1982 was the most radical and vexing blueprint of the Thatcher era, including a call for the end of the NHS by scrapping free universal healthcare, introducing compulsory charges for schooling and sweeping defence cuts.

The proposals proved far too militant for the “wets” in Mrs Thatcher’s frontbench team and were shouted down at a meeting in September that year which Nigel Lawson, the then Energy Secretary, later described in his memoirs as “the nearest thing to a Cabinet riot in the history of the Thatcher administration.”

A chastened Mrs Thatcher, who later claimed she had been “horrified” at the CPRS document, responded to the leak of a watered-down version of the paper by using her speech to the Conservative Party conference in 1982 to insist that the NHS is “safe with us”.

But Treasury documents released at the National Archives in Kew, west London, show that the Iron Lady and her first Chancellor did not let the project drop and planned behind the scenes to “soften up” the ministers in charge of the main departments targeted by the CPRS.

In November 1982, a memo was sent informing Sir Geoffrey that Mrs Thatcher had set up meetings with her Health Secretary, Norman Fowler, Education Secretary Keith Joseph and Defence Secretary John Nott. The memo said: “This series of meetings is designed to soften up the three big spenders. Without their support the operation will not work.”

The document details a political pincer movement between No 10 and the Treasury with Sir Geoffrey asked to ensure that no department’s funding was ring-fenced – although there was recognition that the Prime Minister’s public position on the NHS made that difficult. It said: “Your main aim, I suggest, should be to ensure that no sacred cows are prematurely identified. Given the Prime Minister’s concern about the NHS, this may be difficult.”

The files suggest the ploy met immediate opposition. A later Treasury memo said: “DHSS [Department of Health and Social Security] officials say there is no chance that Mr Fowler would agree to further study of this idea. I imagine that in the circumstances, and especially given the Prime Minister’s speech at Brighton, it is difficult to press them.”

The documents go on to reveal that Sir Geoffrey had a certain ambivalence towards how the Thatcherite project should proceed.

When the Adam Smith Institute came forward with a project to set out a plan for radical Whitehall restructuring to be enacted after the 1983 general election, Sir Geoffrey accepted the concerns of his political adviser that the scheme would fail.

Sir Geoffrey Wrote: “Every proposal will be seized on and hung round our neck. I see v great harm.” (p. 16).

This gives the lie to Thatcher’s claim in her autobiography that when she reviewed the NHS, she found it to be basically found, and only felt that it should have given more space to private industry. It also shows that Leon Brittan was also lying in his autobiography when he also claimed that the Labour party had lied about the Tories planning to abolish the NHS. They had considered it in 1983, and again considered it four years later in 1987.

As for the cabinet rebels who ‘rioted’ against Thatcher’s scheme, from what I’ve read they were motivated not from principle but from the realisation that if she tried to carry out her plans, they’d all be out of a job come the next election.

This did not stop the Tories carrying on the piecemeal privatisation of the NHS. Thatcher carried on chipping away at it. So did John Major, and it was kicked into a higher gear by Tony Blair and Gordon Brown. And now David Cameron and his wretched successor, Theresa May, have nearly completed the job.

I also like to know who the members of the CPRS were, who recommended the complete dismantlement of the welfare state. At the moment, ideological thugs like them hide behind their extremely low profiles. If the politicians, who’ve embraced their ideas are attacked on lose their seats, these people are nevertheless safe, in that they slink off and get another seat at the governmental table somewhere else. Mike on his blog pointed out how Wasserman, one of the architects behind Thatcher’s plan to privatise the NHS, was also one of the official invited back to advise Cameron on how to ‘reform’ it, in other words, privatise more of it.

It’s about time the shadowy figures behind these ideas were named and shamed, as well as the foul politicos who back them.

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One Response to “‘I’ Newspaper: Thatcher Wanted to Abolished Welfare State and NHS Even After Cabinet ‘Riot’”

  1. Florence Says:

    I would suggest Letwin is the thread running through the whole sorry tale. Electedto a safe seat in 1997, he finished his academic studies (PhD) in 1982, and almost immediately became part of the CPRS in 1982. That was coincidentally when the ideas initially proposed in 1978 became part of the assault on the individual budget holders began in earnest. He then moved on to working with the CPS think tank.

    In fact Letwin was associated with some of the most controversial policies – such as using Scotland as a testing ground for the POl Tax, and other unpopular policies. He is associated with racist memos written for Thatcher. He was also the author with Redwood of the 1988 CPS pamphlet that is the blueprint for the 2012 Act, which had itself been under preparation since 2007 -8 (ish).

    The CPS was founded in 1972 by the “Mad Monk”Keith Joseph, and Alfred Sherman and Thatcher, to champion “liberal thinking” (now called neo liberalism). “In her own words, its job was to ‘expose the follies and self-defeating consequences of government intervention….’to think the unthinkable’ ” (.Margaret Thatcher The Path to Power (London 1995), p. 253). The proposals on the NHS certainly fulfilled that objective, and seem to have arisen from within this coterie and melting pot while the Tories were in opposition in the 1970s. Other notable members of the CPS who are still influential in the Tory party include John Redwood, Dave Willitts, and Michael Fallon. Letwin of course was the main back-room grandee for Cameron and Osborne. He has since left the Downing Street role but his policies continue to be implemented.

    Friedman, Joseph and Sherman were the main right-wing influences on Thatcher, but through Friedman and the Chicago School there were links directly to Pinochet in Chile (the Chilean “Chicago Boys”) and into the economic ideologies of nations across the globe. In the Wiki entry for Chicago school for the UK it sparsely notes that Thatcher implemented the Chicago school neoliberal policies and these were left intact and some were completed by Blair including the entry of private medicine into the NHS.

    Getting information in who the members of the CPRS and the CPS were during those years is surprisingly difficult.

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