Sunday, December 30, 2012

Thatcher’s role in plan to dismantle welfare state revealed

Newly released Downing Street documents show Tory cabinet considered compulsory charges for schooling and end to NHS


Margaret Thatcher
Margaret Thatcher at the Conservative party conference in 1982.
 
Margaret Thatcher and her chancellor Sir Geoffrey Howe were behind a politically toxic plan in 1982 to dismantle the welfare state, newly released Downing Street documents show. She later attempted to distance herself from the plans after what was described as a “riot” in her cabinet.

The proposals considered by her cabinet included compulsory charges for schooling and a massive scaling back of other public services. “This would of course mean the end of the National Health Service,” declared a confidential cabinet memorandum by the Central Policy Review Staff in September 1982, released by the National Archives on Friday under the 30-year rule.

Nigel Lawson, then the energy secretary, said the report by the official thinktank on long-term public spending options caused “the nearest thing to a cabinet riot in the history of the Thatcher administration“.
 In her memoirs, Thatcher said: “I was horrified when I saw this paper. I pointed out that it would almost certainly be leaked and give a totally false impression … It was all a total nonsense,” claiming the proposals were never seriously considered by her or her ministers.

But the 1982 cabinet papers show the politically explosive paper was discussed at a special half-day extended cabinet discussion on 9 September that year. They show that Thatcher and Howe had been encouraging the CPRS thinktank to come up with such long-term radical options since February that year and that Howe continued to defend them even after the cabinet “riot” described by Lawson.