Perhaps the word “enjoy” here is doing a little too much work. This was a period of ideological ferment and not just between Left and Right, but within the Conservative Party itself, pitting the self-styled libertarian Thatcherites on one side against their “Wet” opponents on the other. Yet to have an ideological dispute, you need clashing ideologies, which in that period were in abundance.
Back then, ideas and intellect certainly seemed to matter. The other day I came across an entry from Thatcher’s engagement diary in October 1982 regarding a dinner organised by her think tank, the CPS.
Among those who attended were V.S. Pritchett, Anthony Quinton, Isaiah Berlin, V.S. Naipaul, Tom Stoppard and Phillip Larkin. A briefing note sent to Thatcher contains descriptions of each of the guests. “Anthon Quinton: President of Trinity Oxford. Conservative philosopher. You liked his ‘Politics of Imperfection’ and quoted it in the Airey Neave lecture”. “VS Naipaul: Very successful, sharp, angular novelist. Trinidad origin. Passionately opposed to the Left and of course ‘Liberation movements’.” “Tom Stoppard: Brilliantly successful and entertaining, rather Shavian, playwright. Czech origin. I expect you will have seen several of his plays e.g. Professional Foul, Night & Day.”
It is hard to imagine today’s political class ever receiving such a briefing with that degree of assumed knowledge — or any of the leading figures taking an evening off to enjoy their equivalent company. And Jenrick’s stunt only served to remind us of that. Starmer, despite declaring that he does not have a favourite book or poem, is not an uneducated man — far from it. In his speech to Labour conference he spoke of the value of the arts and his own love of classical music. Yet, we all know, implicitly, that this is an age not of great ideas, but of Zoom calls, spreadsheets and box sets.
As a result there is a shallowness to today’s politics. Starmerism is clearly not the product of an ideological movement years in the making boasting a cadre of political ground troops ready to go into battle for its principles. This government is, rather, a reaction to two distinct failures: the Labour Party under Jeremy Corbyn and the Conservative Party under five different prime ministers. Beyond that, its roots are so shallow it risks being blown away at the first storm that comes along.
Which brings us to that final, inescapable, economic reality. Money. While there has been much focus on the French fiscal crisis and the growing spread between its bond yields and those of the Germany, it has been less remarked upon that British borrowing costs are now higher than both countries — and rising as investors begin to price in the likelihood that Rachel Reeves will increase borrowing in her statement on 30 October.
For much of Labour’s first 100 days, it has argued that its first priority is to put the Government’s books in order following an apparently reckless Tory splurge under Rishi Sunak and Liz Truss. “Never again” has been Starmer’s motto, a reference to the crisis which followed the Truss mini-budget of 2022. And yet, without much fanfare, the yield on 10 year gilts is now almost back to where it was in 2022 at over 4% — a whole percentage point higher than in France.
The reality for Britain, then, is that its economic challenges have not gone away because it replaced Truss with Sunak and then Sunak with Starmer. The fundamentals remain difficult and clearly no one in Government has a clue how we might escape this trap. And it is a brutal trap: how can we, as an ageing, indebted and energy-poor country that is dependent on inward investment, possibly find a way to prosper in an increasingly protectionist world dominated by Chinese exports, American technology and a booming Middle East? Right now, no one seems to have a clue.
At Starmer’s investment conference in London, the boss of the US pharmaceutical giant Eli Lilly, David Ricks, set out the challenge as he sees it. “I think the difference in the UK is, separate from Europe, it’s a relatively small market for most multinationals and certainly for Americans, so something needs to be quite different to make it interesting.” For many Remainers, it was a gotcha moment: had we stayed in the EU, we would not have to be so different, and so would not be chasing businessmen like him. But the reality is that Britain has been desperately searching for inward investment for decades — and has even succeeded at it: last year the UK actually saw its its foreign investment grow, as Europe’s fell. The reason we are dependent on foreign finance is not because we left the EU, but because we run such a large trade deficit. As David Edgerton put it in The Rise and Fall of the British Nation, the dream of Thatcherism was to resurrect British capitalism, but what we really did was to open Britain up to the world’s capital.
I’m not sure Britain does need to make itself “interesting” in the way Ricks and his friends describe. But we clearly need to do something different. And in the meantime, we are prostrating ourselves before rogue operators who know how desperate we are.
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Subscribe“Something needs to be different to make it interesting.”
That something needs to be a little more than the Royal Family, incorruptible courts and fluency in English. These are hard-headed businessmen and women, so they look for dependable profits.
Cheap, imported labour is one way.
An educated, hardworking workforce, a comprehensible tax system, modern infrastructure and inexpensive energy costs is another.
I wonder which Starmer will go for?
Who knows? Starmer certainly doesn’t. He is yet another one who wanted to be PM but has no idea what to do when he has actually got there.
His view that “lockdowns” should have been longer and harder, presumably supported by even more printing of money, doesn’t exactly demonstrate a grasp of economic realities.
There are multiple responses to make to this sad, dirge of an article, a fugue in both the musical and psychiatric sense. We can rant at the Tories, or at Starmer, or preferably both (and my instincts, hackles rising even as I write this, are to do precisely that). Or we can lament with the author: ‘For God’s sake let us sit upon the ground, And tell sad stories about the death of kings’. But one thing I know: Britain has absolutely everything it needs, to not just stay afloat, but thrive in the 21st century. But to do that, Britain first has to decide who they are, and then use what they have got. That is of course a hackneyed cliche, but I have thought that for literally decades, and it looks to me as true today as it ever did. I will also say one more thing: the fear within the UK ruling circles, regardless of party, regardless of the timeline, of a protectionist world, has been a perrienial throughout my five+ decades in the UK, to the point where every single government has overcompensated in their zeal to set an open-trade example – and this article is no exception. But Britain has been chasing a mirage. You don’t need to be dependent on the US, or China, or the EU or anyone. Thinking that you are, is a choice.
What’s not to like about Thatcher? She smashed the Unions, flamed the Argentinians, tormented the EU (or the EEC, as it then was) and turned a bunch of council house dwellers into home owners! Oh, and she helped Reagan win the Cold War!
“The reason we are dependent on foreign finance is … because we run such a large trade deficit.” Yes, and a lot of that “investment” is just selling off national assets to anyone, so long as they are foreign. It is interesting that the specific investment projects will, in the long term, make that trade deficit worse. The container port project makes it cheaper to import and the Stansted project makes it more convenient to make trips abroad. Both very nice, but neither addressing the root cause.
We run such a large trade deficit because Thatcher destroyed much of industry in the early 80s and subsequent governments have shown no interest in reviving it. The point not made is that being dependent on foreign investment is fine for a while as it tends to lead to prestige projects such as London skyscrapers. After a while though the foreign investment starts to buy out what people depend on for their daily lives: farmland, water, their own homes. The UK is becoming a colony owned and run by a cartel of imperial interests.