Margaret Thatcher: The Autobiography

by Margaret Thatcher

  By the time I rose to deliver my speech on Friday 5 February 1960, I knew the arguments by heart. As a result, I could speak for almost half an hour without notes to hand – though not without nerves. The three women members of the Government – Pat Hornsby-Smith, Mervyn Pike and Edith Pitt – showed moral support from the front bench, and the House was very full for a Friday. I was delighted that nearly 200 Members voted, and we won handsomely. I was also genuinely moved by the comments that different MPs made to me personally – particularly Rab Butler, the Leader of the House and a master of ambiguous compliments, whose congratulations on this occasion, however, were straightforward, generous and very welcome to a new Member.

  It was clear from the press next day that the speech had been a success and that I was – for the present at least – a celebrity. ‘A new star was born in Parliament’, thrilled the Daily Express. ‘Fame and Margaret Thatcher made friends yesterday’, shrieked the Sunday Dispatch. ‘A triumph’, observed the Daily Telegraph evenly. Feature articles appeared about me and my family. I was interviewed on television. The cameras came down to ‘Dormers’, and in an unguarded moment in answer to one of the more preposterous questions I told a journalist that ‘I couldn’t even consider a Cabinet post until my twins are older.’ But apart from this gaffe it was roses, roses all the way.

  Excessive praise? I had no doubt myself that it was. And I was slightly nervous that it might excite the jealousy of colleagues. My speech had been a competent performance, but it was not an epic.

  But was it, however, a portent? Some time before the general election I had read John Buchan’s The Gap in the Curtain. I had not thought more about it until I considered these somewhat overstated headlines. John Buchan’s tale concerns a group of men, including several politicians, who spend Whitsun at a friend’s house where they are enabled by another guest, a mysterious and fatally ill physicist of world renown, to glimpse the contents of a page of The Times one year later. Each sees something affecting his own future. One, a new Conservative MP, reads a brief obituary of himself which notes that he had delivered a brilliant maiden speech that had made him a national figure overnight. And so it turns out. The speech is outstanding, praised and admired on all sides; but after that, deprived of the self-confidence which knowledge of the future gave him, he fails totally and sinks into oblivion, waiting for the end. I shuddered slightly and reached for my lucky pearls.

  But my Bill – with the significant addition that members of the general public should have the same rights as the press to attend council meetings, and with committees (apart from committees of the whole council) excluded from its provisions – duly passed into law; and, though my seven-day stardom faded somewhat, I had learned a lot and gained a good deal of confidence.

  Life on the backbenches was always exciting – but so hectic that on one occasion, to the consternation of my male colleagues, I fainted in the Members’ Dining Room. I spent as much time as I could in the House and at backbench committees. I also regularly attended the dining club of new Tory Members to which the great figures of the Party – Harold Macmillan, Rab Butler, Iain Macleod and Enoch Powell – and brilliant young Tory journalists like Peter Utley would come to speak.

  The natural path to promotion and success at this time lay in the centre of politics and on the left of the Conservative Party. Above all, the up-and-coming Tory politician had to avoid being ‘reactionary’. Nothing was likely to be so socially and professionally damaging as to bear that label. Conservatism at this time lacked fire. Even though what are now widely seen as the damaging moral, social and economic developments of the sixties mainly belong to the period of Labour government after 1964, the first years of the decade also were ones of drift and cynicism, for which Conservatives must be held in large part responsible.

  The odd thing is, looking back, that Conservatives in the sixties, though increasingly and obsessively worried about being out of touch with contemporary trends and fashions, were beginning to lose touch with the instincts and aspirations of ordinary conservative-minded people. This was true on issues as different as trade unions and immigration, law and order and aid to the Third World. But it was also and most directly important as regards management of the economy.

  It was not so much inflation, which was zero throughout the winter of 1959–60 and did not reach 5 per cent until the summer of 1961, but rather the balance of payments that was seen as the main economic constraint on growth. And the means adopted to deal with the problems at this time – credit controls, interest rate rises, the search for international credit to sustain the pound, tax rises and, increasingly, prototype incomes policies – became all too familiar over the next fifteen years.

  The rethinking that produced first ‘Selsdon Man’ and later Thatcherism was barely in evidence.

  The more I learned about it, the less impressed I was by our management of the economy. I listened with great care to the speeches of the Tory backbencher Nigel Birch, which were highly critical of the Government’s failure to control public spending. The Government’s argument was that increases could be afforded as long as the economy continued to grow. But this in turn edged us towards policies of injecting too much demand and then pulling back sharply when this produced pressures on the balance of payments or sterling. This is precisely what happened in the summer of 1961 when the Chancellor of the Exchequer Selwyn Lloyd introduced a deflationary budget and our first incomes policy, the ‘pay pause’. Another effect, of course, was to keep taxation higher than would otherwise be necessary. Chancellors of the Exchequer, wary of increases in basic income tax, laid particular importance on checking tax avoidance and evasion, repeatedly extending Inland Revenue powers to do so. Both as a tax lawyer and from my own instinctive dislike of handing more power to bureaucracies, I felt strongly on the matter and helped to write a critical report by the Inns of Court Conservative Society.

  I felt even more strongly that the fashionable liberal tendencies in penal policy should be sharply reversed. So I spoke – and voted – in support of a new clause which a group of us wanted to add on to that year’s Criminal Justice Bill which would have introduced birching or caning for young violent offenders. In the prevailing climate of opinion, this was a line which I knew would expose me to ridicule from the selfconsciously high-minded commentators. But my constituents did not see it that way, and nor did a substantial number of us on the right. Although the new clause was defeated, sixty-nine Tory backbenchers voted against the Government and in support of it. It was the biggest Party revolt since we came to power in 1951, and the Whips’ Office were none too pleased. It was also the only occasion in my entire time in the House of Commons when I voted against the Party line.

  The summer of 1961 was a more than usually interesting time in politics. I retained my close interest in foreign affairs, which were dominated by the uneasy developing relationship between Kennedy and Khrushchev, the building by the Soviets of the Berlin Wall and, closer to home, by the beginning of negotiations for Britain to join the Common Market. There was also speculation about a reshuffle. In spite of my slightly blotted copybook, I had some reason to think that I might be a beneficiary of it. I had remained to a modest degree in the public eye, and not just with my speech on corporal punishment. I gave a press conference with Eirene White, the Labour MP for East Flint, on the lack of provision being made for the needs of pre-school children in high-rise flats, a topic of growing concern at this time when so many of these badly designed monstrosities were being erected. But the main reason why I had hopes of benefiting from the reshuffle was very simple. Pat Hornsby-Smith had decided to resign to pursue her business interests, and it was thought politically desirable to keep up the number of women in the Government.

  That said, I did not try to conceal my delight when the telephone rang and I was summoned to see the Prime Minister. Harold Macmillan was camping out in some style at Admiralty House while 10 Downing Street was undergoing extensive refurbishment. I had already developed my own st
rong impressions of him, not just from speeches in the House and to the 1922 Committee, but also when he came to speak to our New Members’ Dining Club – on which occasion he had strongly recommended Disraeli’s Sybil and Coningsby as political reading. But Disraeli’s style was too ornate for my taste, though I can see why it may have appealed to Harold Macmillan. It is now clear to me that Macmillan was a more complex and sensitive figure than he appeared; but appearance did seem to count for a great deal. Certainly, whether it was striking a bargain and cementing a friendship with President Kennedy, or delivering a deliciously humorous put-down to a ranting Khrushchev, Harold Macmillan was a superb representative of Britain abroad.

  I sorted out my best outfit, this time sapphire blue, to go and see the Prime Minister. The interview was short. Harold Macmillan charmingly greeted me and offered the expected appointment. I enthusiastically accepted. I wanted to begin as soon as possible and asked him how I should arrange things with the department. Characteristically, he said: ‘Oh well, ring the Permanent Secretary and turn up at about 11 o’clock tomorrow morning, look around and come away. I shouldn’t stay too long.’

  So it was the following morning – rather before eleven – that I arrived at the pleasant Georgian house in John Adam Street, just off the Strand, which was at that time the headquarters of the Ministry of Pensions and National Insurance. In a gesture which I much appreciated – and which I myself as a Cabinet minister always emulated – John Boyd-Carpenter, my minister, was there at the front door to meet me and take me up to my new office. John was someone it was easy to like and admire for his personal kindness, grasp of detail and capacity for lucid exposition of a complex case. And he was an excellent speaker and debater. All in all, a good model for a novice Parliamentary Secretary to follow.

  The first step was to re-read the original Beveridge Report in which the philosophy of the post-war system of pensions and benefits was clearly set out. I was already quite well acquainted with its main aspects and I strongly approved of them. At the centre was the concept of a comprehensive ‘social insurance scheme’, which was intended to cover loss of earning power caused by unemployment, sickness or retirement. This would be done by a single system of benefits at subsistence level financed by flat-rate individual contributions. By the side of this there would be a system of National Assistance, financed out of general taxation, to help those who were unable to sustain themselves on National Insurance benefits, either because they had been unable to contribute, or had run out of cover. National Assistance was means tested and had been envisaged as in large part a transitional system, whose scope would diminish as pensions or personal savings rose.

  It is easy in retrospect to poke fun at many of Beveridge’s assumptions and predictions. But Beveridge had sought to guard against the very problems which later governments more or less ignored and which have now returned to plague us, in particular the debilitating effects of welfare dependency and the loss of private and voluntary effort. Whatever the effects in practice, the Beveridge Report’s rhetoric has what would later be considered a Thatcherite ring to it:

  … The State should offer security for service and contribution. The State in organizing security should not stifle incentive, opportunity, responsibility; in establishing a national minimum, it should leave room and encouragement for voluntary action by each individual to provide more than that minimum for himself and his family. [Paragraph 9]

  … The insured persons should not feel that income for idleness, however caused, can come from a bottomless purse. [Paragraph 22]

  Much of our time at the Ministry was taken up both with coping with the effects of and finding remedies to the difficulties which flowed from the gap between Beveridge’s original conception and the way in which the system – and with it public expectations – had developed. So, for example, in those days before inflation took hold and benefits were annually up-rated to cope with it, there were cries of disapproval when National Insurance pensions were increased and National Assistance, which made up your income to a certain level, was not. People also increasingly came to expect something better than a subsistence-level pension to retire upon, but the contribution levels or financing from general taxation which this would require seemed prohibitive. This lay behind John Boyd-Carpenter’s idea of the ‘graduated pensions’ scheme, whereby the payment of higher contributions could secure a somewhat higher pension, and provision was made for the encouragement of private occupational pension schemes. Another constant source of difficulty for which we found no ultimate (affordable) answer was the ‘earnings rule’ whereby pensioners who worked would at a certain level of income lose part or all of their pension payments. It was the impact of this on pensioner widows which caused me most difficulty and not a little heart-searching.

  Apart from the Beveridge Report and other general briefing from the department, it was the case work – that is the investigation of particular people’s problems raised in letters – which taught me most about the Social Security system. I was not prepared to sign a reply if I did not feel that I properly understood the background. Consequently, a stream of officials came in and out of my office to give me the benefit of their matchless knowledge of each topic. I adopted a similar approach to parliamentary questions, which would be shared out between the ministers. I was not content to know the answer or the line to take. I wanted to know why.

  Having served as a junior minister to three different ministers in the same department I was interested to see that the advice tendered to the ministers by civil servants differed, even though it was on the same topic. So I complained when both Niall Macpherson and Richard Wood received policy submissions proposing approaches that I knew had not been put to their predecessor, John Boyd-Carpenter. I remember saying afterwards: ‘That’s not what you advised the previous minister.’ They replied that they had known that he would never accept it. I decided then and there that when I was in charge of a department I would insist on an absolutely frank assessment of all the options from any civil servants who would report to me. Arguments should be from first principles.

  I also learned another lesson. There was a good deal of pressure to remove the earnings rule as regards widowed mothers. I sympathized with it strongly. Indeed, this was one of the issues upon which, as a new MP, I had publicly stated my position. I thought that if a woman who had lost her husband but still had children to support decided to try to earn a little more through going out to work she should not lose pension for doing so. Perhaps as a woman I had a clearer idea of what problems widows faced. Perhaps it was my recollection of the heartbreaking sight of a recently widowed mother eking out her tiny income buying bruised fruit at my father’s shop. But I found it almost impossible to defend the Government line against Opposition attack. I raised the matter with officials and with my minister. On one occasion, I even raised it with Alec Douglas-Home as Prime Minister when he came to speak to a group of junior ministers. But although he seemed sympathetic, I never got anywhere.

  The argument from officials in the department was always that ending the earnings rule for even this most deserving group would have ‘repercussions’ elsewhere. And, of course, they were logically correct. But how I came to hate that word ‘repercussions’.

  Ministers were wrong to take such arguments at face value and not to apply political judgement to them. It was no surprise to me that one of the first acts of the incoming Labour Government in 1964 was to make the change for which I had been arguing, and to get the credit too. The moral was clear to me: bureaucratic logic is no substitute for ministerial judgement. Forget that as a politician, and the political ‘repercussions’ will be on you.

  I retained my taste for the Chamber of the Commons, developed during my two years on the backbenches. We faced no mean opponents on the Labour benches. Dick Crossman had one of the finest minds in politics, if also one of the most wayward, and Douglas Houghton a formidable mastery of his brief. I liked both of them, but I was still determined to win any argumen
t. I enjoyed the battle of facts and figures when our policies were under fire at Question Time and when I was speaking in debates – though sometimes I should have trod more warily. One day at the Dispatch Box I was handed a civil service note giving new statistics about a point raised in the debate. ‘Now,’ I said triumphantly, ‘I have the latest red hot figure.’ The House dissolved into laughter, and it took a moment for me to realize my double entendre.

  As luck would have it, at Pensions we were due to answer questions on the Monday immediately after the notorious Cabinet reshuffle in July 1962 which became known as ‘The Night of the Long Knives’. John Boyd-Carpenter departed to become Chief Secretary to the Treasury and Niall Macpherson had not yet replaced him at Pensions. Since most of the questions on the Order Paper related to my side of the department’s activities, rather than War Pensions, I would have to answer in the place of the senior minister for nearly an hour. That meant another nerve-racking weekend for me and for the officials I had to pester. The Labour Party was in rumbustious mood, but I got through, saying when asked about future policy that I would refer the matter to my minister – ‘when I had one’.

  But would the Government get through? As I was to experience myself many years later, every Cabinet reshuffle contains its own unforeseen dangers. But no difficulties I ever faced – even in 1989 – matched the appalling damage to the Government done by ‘The Night of the Long Knives’, in which one third of the Cabinet, including the Lord Chancellor and the Chancellor of the Exchequer, were dispatched and a new generation including Reggie Maudling, Keith Joseph and Edward Boyle found themselves in the front line of politics. One of the lessons I learned from the affair was that one should try to bring in some younger people to the Government at each reshuffle so as to avoid a log-jam. The handling of the changes was badly botched by Macmillan, whose standing never really recovered.