Breaking the Mould Redux: A Wikibox Timeline

[Lucon50]

Hi everyone!

In the wake of recent drafts and learning to create wiki infoboxes, I've decided to organise this alt-history into a final, proper timeline, complete with media and quotations. Our story follows Britain under the divisive rule of Maggie Thatcher, Labour's conversion to full-blooded socialism and the ascendancy of a new, radical centre: the SDP-Liberal Alliance. My work aims to tell what happened in much greater detail, so might take a while to unfold - our goal is to cover a world shaped by events all the way until the present day. Prepare for changed realities, a shock to political fortunes and the UK's very nature to be dramatically different by the end of it! Thanks for reading

So here goes -

BREAKING THE MOULD REDUX:
A Wikibox Timeline

On 4th May 1979, the United Kingdom awoke to news of a change of government. Having conducted polling across the land, Labour were out and the Conservatives, for the first time in five years, were in. Britain swung decisively to a fresh kind of Toryism, more classical free markets than post-war moderation. Under Margaret Thatcher, the country had a woman leader and the mandate to introduce policies to end a consensus in effect since 1945.

Her objectives were rebuilding economic prosperity, limiting trade union freedoms and transforming the soul of the nation. At the steps to 10 Downing Street, the incoming prime minister quoted St Francis of Assisi: "Where there is discord, may we bring harmony. Where there is error, may we bring truth. Where there is doubt, may we bring faith. And where there is despair, may we bring hope".



Mrs Thatcher's cabinet included faces from left and right of the party quite evenly, with several millionaires, old Etonians and hereditary peers. The chancellor, Geoffrey Howe, asserted that both borrowing and spending were too high and, in order to reduce inflation, must be reduced. The indicators looked negative; unemployment was also rising. In his budget, public expenditure and direct taxation would be cut, while the indirect value-added tax (VAT) rose substantially. Moving the burden of taxation, distributive role of the state and balance of power in the country at large - from workers to employers and in favour of individuals - became the government's driving missions.



By early 1980, inflation had actually doubled to 21.8% since Labour left office. This was a recurring problem catalysed by shocks to oil prices in the 1970s. The unions, hoping to prevent their members taking the brunt of spiralling prices, fought collectively for wage increases, which grew by 20.1% in the same period. Howe's response was paired to high interest and exchange rates; with a manufacturing sector in trouble, forecasts were bleak. As some of the media and Conservatives talked of a 'wage-price spiral', petrol's shrinking affordability thanks to price gouging and market forces in the OAPEC zone really hit working-class Brits in their pockets. Thatcher espoused 'sound finances': handling the economy as a household budget, to be trimmed of anything deemed wasteful, such as badly run or loss-making industries and even jobs.

As ship-building and steel fell to the gods of monetarism, outcries across the country against its so-called 'Iron Lady' were palpable. Jobless numbers topped 2 million that year, with grim consequences for family incomes, poverty and life chances. Britain was entering a recession. The Tory left, represented by Ted Heath, Jim Prior etc held misgivings about the course of economic policy. Damaging leaks to the press added to a narrative of Keynesian 'wets' vs Thatcherite 'dries'. Against this backdrop of turmoil, the prime minister took to her stage at the 1980 Conservative Party conference to send a resolute message: "To those waiting with baited breath for that favourite media catchphrase, the U-turn, I have only one thing to say: you turn if you want to; the lady's not for turning".

 

[Lucon50]

Labour's fall originated long before the 1979 election. Decline had become, indeed, a watchword of the preceding decade - hence Mrs Thatcher's promise to reverse the seemingly terminal illness of Britain. The nation's Keynesian consensus since Attlee agreed the following: an economy mixed between public and private ownership; a welfare state; trade unions protected in law; high taxes, especially on the better-off; and regulation of industry. Having brought about considerable betterment and success over thirty years, by the time of the oil crisis and regular strikes problems were beginning to show.

The mediation of employees' and bosses' interests, now diverging into the open, spoke to a contradiction at the heart of British capitalism. Only two widely-known politicians argued in favour of transforming or ending it: left-wing firebrand Tony Benn and, from the right, the prime minister herself. For Benn, growing industrial disputes would have to be solved by a meeting of employees' demands via the socialisation of production and workers' management of industry. For Mrs Thatcher and pro-capitalists, this notion was total anathema. Only by undoing the regulation of enterprise would business owners freely take control, guided by the 'invisible hand' of the market.



Unfortunately for James Callaghan's Labour, whose moderate style of governance from 1974 represented a weak and rudderless centre, Britain reached a moment of choice during his lowest ebb in office. Strike after strike resulted in 1978 - when even rubbish collections ground to a halt - being described as 'the Winter of Discontent', as Thatcher's party hammered Callaghan for inaction. After the Tories romped home with a 40-plus majority in Parliament, Labour began its soul-searching.

In a ballot of MPs, compromise candidate Michael Foot was elected leader on 10th November 1980. A socialist inspired by the politics of Nye Bevan, Foot held the respect of many colleagues for his intellect and brilliant oratory. Denis Healey, who had come second in the vote, won the deputy leadership unopposed as champion of the Labour right wing. Foot was known to support unilateral disarmament of nuclear weapons, calling a strategy of mutually assured destruction "insanity" and backing the CND alongside other groups.



While Foot chiefly hailed from the traditions of parliamentary socialism, efforts to radically democratise the Labour movement came from those further left. Grassroots activists, supported by Mr Benn, campaigned for the mandatory reselection of MPs, meaning that at each election all candidates would need to face local party members. Leaderships of the future should be chosen on a wider franchise than just MPs, elected representatives would draft the manifesto and Labour must secure a voice for women in the party. Members increasingly advocated a more ideological commitment to socialism, to provide a clear alternative to the harshness of Thatcherism and build a mass democracy. Such ideas at the time challenged the status quo and provoked outrage from many, just as Mr Foot was settling into his new role.

 

[Lucon50]

25th January 1981 saw a historic moment in British politics. Gathered in front of a nervous Press Association at a house in east London by the Thames, the announcement came for reporters to wait outside until all four hosts were ready. Roy Jenkins, former minister and President of the European Commission: he had given a 1979 lecture arguing for realignment, either through the Liberal Party or a new centre-left force. David Owen, ex-foreign secretary: only a day prior, he'd angrily sat out the bitter Labour conference, faced away from attendees over Bennite success. Shirley Williams, darling of the membership, was growing tired of infighting and missed her time in Harold Wilson's cabinet. Bill Rodgers could be spotted too, factional organiser of the Labour right.



After several hours, expectant journalists received their news: on a small bridge near Owen's residence in Limehouse, copies of a short manifesto were handed out with a hurriedly drafted set of principles written down. They declared the foundation of a Council for Social Democracy, to "reverse Britain's economic decline", "eliminate poverty", "create an open... more equal society" and counter "the drift towards extremism in the Labour Party". In a newspaper advertisement, 100 prominent supporters were named, including George Brown and Dick Taverne. Thousands of individual messages of encouragement fuelled the breakaway 'Gang of Four' with hope as the new party age was born.

In March 1981, Geoffrey Howe presented his forthcoming budget. The UK economy was getting worse with high unemployment and inflation at roughly 15%. The chancellor restrained the money supply by levying charges, including on North Sea oil and banks, freezing income tax thresholds, hiking duties and reining in the level of government borrowing. Michael Foot predicted over three million out of work and many economists, questioning the validity of monetarist ideas, argued the measures could imperil "social and political stability". One-nation Conservative veteran Ian Gilmour had already warned that Thatcherism threatened freedom by abandoning communities. After the budget, he and two others (Christopher Brocklebank-Fowler and former prime minister Edward Heath) left the Tories for good. Crossing the parliamentary benches, each signed up to the Limehouse Declaration in alliance with the Gang of Four.



Armed with red and blue defectors, the Social Democratic Party was created on 26th March. Other names, such as 'New Labour' and 'Radical' were passed over as Owen especially wished to give the new body firm ideological roots in the European tradition. Jenkins began to think of himself as a future national leader, once the SDP climbed so far up the polls as to overtake her rivals. In a surprise to Mrs Williams, they achieved huge media interest straight away - a political honeymoon. Waves of phone calls from supporters arrived as the numbers swelled to form a powerful grassroots. Now the work began on establishing policy. SDP members would debate key areas, for example health and schools, all with one mission: to find a third way, neither hard left/right, with a vibrant, mixed economy and democratic reforms aimed at reforging the great ship Britain.

 

[Lucon50]

Although subsequent events have become public knowledge over the long term in diaries and documentaries alike, the birth of the SDP astonished commentators in 1981. Heath's decision to leave the Conservatives, in particular, triggered an earthquake in political loyalties and norms. If a former prime minister could make a home in this nascent group, couldn't anyone? Of course, more tribal figures on the Tory benches castigated Heath for the ultimate sin, while socialist Labour MP Dennis Skinner described the Gang of Four as "traitors" and Mr Owen "phoney as a nine pound note". The attacks came on top of painful infighting among local branches - for Labour, Social Democratic popularity represented a danger to the class struggle.

Jenkins (who had been in Brussels) and Williams (having lost her seat in 1979) were eager to get back to Parliament under their new banner. Collaboration with the Liberal Party was still an informal arrangement, with some more keen to form a partnership than others. Nevertheless, Mr Jenkins secured a free run in the Warrington by-election. He came from nowhere to win, taking votes from both major parties. Jenkins called this result "by far the greatest victory" of his career and predicted an SDP-Liberal administration at the next election with a large majority.



Riots in April and July vindicated warnings of social unrest, with Mrs Thatcher's personal popularity falling sharply to the lowest recorded for a sitting PM and below Mr Foot's. In a desperate move, Thatcher reshuffled her cabinet on 14th September, purging left-leaning 'wets' who opposed the government's deflationary economic agenda. Tory MP Stephen Dorrell joined the SDP in protest, claiming that his party and Labour were "disintegrating" in slow motion, while "Liberals, progressive Conservatives and Social Democrats" had much more in common than with Thatcher or Foot. Liberal Party leader David Steel was full of optimism and, in closing his conference speech that autumn, instructed activists to "go back to your constituencies and prepare for government".

 

[Lucon50]

List of cabinet ministers following the September 1981 reshuffle:

 

[Lucon50]

Labour made their first moves towards extending leadership selection beyond MPs in 1981 with the formation of an electoral college. The tripartite system gave votes to all of the primary stakeholders in the movement: 30% for MPs, 40% for trade unions and 30% for constituency parties. Initially, balloting was limited and many votes were cast as blocks by organisations. With the SDP and Liberals gaining popular support and the government in freefall, Tony Benn challenged incumbent Denis Healey (elected the previous year) for Labour's deputy leadership under the new college. It would become a divisive contest packed with attacks on every side, media onslaughts against Benn and the direct intervention of Michael Foot in Healey's favour.

Over the campaign, Mr Benn appealed to large crowds and picked up nominations from activists throughout the country. A good third of MPs publicly backed him, including those in the Tribune Group such as rising star Neil Kinnock. The unions witnessed a rallying cry from some of the base to vote for Benn but were more inclined to support Healey. At the Labour Party conference on 27th September, the outcome was announced. Middle-ground candidate John Silkin was knocked out of the race in the first round, so his second preference votes were redistributed. The final ballot ended in victory for Benn, whose anti-establishment, socialist crusade had invigorated democratic debate in the party.



For some centrists this was beyond the pale and greater numbers defected from Labour. Immediately after hearing the result, MPs Giles Radice, Roy Hattersley, George Robertson, John Smith and others negotiated with the Gang of Four to join the SDP. Hattersley was notably reluctant to change sides but he, along with fellow members of the right-wing Manifesto Group, said he could not stomach "these crazy ideas" being advanced by the left. By the end of summer, ordinary people who had never belonged to any party were flocking to the SDP. Foot was unable to resist Mr Benn taking his seat at the top table in Labour; however, relations between the men soured following the election. While Benn was able to turn fresh ears to the party, internal divisions put off countless moderate voters - causing Labour's poll numbers to plunge.

In October, the seat of Croydon North West opened in a by-election after the death of its representative. The Liberal Party, who had come a distant third in 1979, insisted upon contesting but Shirley Williams decided to stand. Much as this angered the Liberal candidate Bill Pitt, who refused to back down, it was soon clear that Mrs Williams had vastly higher popularity and chances to win. David Steel recognised this and Pitt eventually capitulated. In the absence of a formal electoral pact, the Liberals were at a disadvantage next to the SDP. Williams' triumph delighted David Owen who rated her particularly strongly, both in persuading soft Conservatives and trade union members. Pitt observed that the emerging Alliance had "caught the imagination of voters" and questioned whether any safe seats were left for the main parties.

 

[Lucon50]

The Foot shadow cabinet after Benn's victory and SDP defections:

 

[Lucon50]

Across Britain, factories were closing down and inflation as well as unemployment continued to rise. On 25th November, nineteen Conservative MPs wrote a letter to the chief whip, Michael Jopling, in opposition to the government's economic policy. It threatened that, if the upcoming Autumn Statement effectively "deflate[d] aggregate demand", the signatories would "vote against any consequent measures presented" to the House of Commons. Brutal infighting raged as Ian Gilmour, having already exited, urged others to reject Mrs Thatcher and join the SDP. The prime minister tried to ameliorate concerns by inviting potential rebels to drinks, with little success. Jopling emphasised the dire situation and Thatcher's PPS, Ian Gow, organised further attempts to quell the Tory civil war.



Meanwhile, the Crosby by-election resulted in a stunning Liberal victory under a deal with the SDP not to stand. David Steel told the press "I believe that we are now unstoppable" given both SDP and Liberals had now taken support away from the main parties in almost equal measure. The critical vote on the Autumn Statement came on 8th December. Of the nineteen MPs in the letter, most abstained but three voted against the government, leading to a removal of the whip. Hugh Dykes, Robert Hicks and David Knox left for the SDP to sit alongside Heath, Gilmour, Brocklebank-Fowler and Dorrell. The Conservative majority was cut to 36.



Mrs Thatcher entered 1982 beginning to worry about the safety of her position, despite showing a confident face. It is true that she enjoyed parliamentary confidence; at the same time, a gradual leaking of MPs to the opposition benches did not bode well for the new year. One compensatory factor was the exodus of centrist Labour MPs, weakening Michael Foot's hand. On 2nd January, the Liberal candidate scored a win in Glasgow Hillhead. Between his party and the SDP, 50% of respondents backed the Alliance in opinion polls. Without exaggeration, the brewing context was one of panic and editorials spoke openly of the possibility that, in the next election, the Tories would be reduced to 20% and their fewest numbers in living memory. Although Labour's future was harder to predict, a relentless push to doctrinaire socialism was evident. Looking to formalise cooperation, Steel met with Bill Rodgers for negotiations.

 

[Lucon50]

By early 1982, the SDP was nearing its first birthday a sizeable group, totalling over 30 MPs and a membership base of 80,000, who decided the month before to retain their control over internal elections. Roy Jenkins had tried in vain to reserve this right for parliamentarians, a move which infuriated David Owen. The party was still without an official leader although Jenkins thought of himself as one. Shirley Williams challenged him for the position, with nominations closing on 4th December 1981. Ian Gilmour also made it on to the ballot. They agreed not to campaign publicly against one other. Members had three weeks to vote. Initially, differences had been muted between leading SDP figures; however, as the race progressed, each began to highlight policies unique to them, with a view to offering greater choice and marking out their candidacy from both rivals.



The Gilmour campaign, operating mostly through briefings to lobby journalists, was supported by ex-Conservatives in the party - Ted Heath, Christopher Brocklebank-Fowler, Stephen Dorrell and others. Mr Gilmour promised his leadership would advance the following ideas: control of public spending, prices and incomes; new 'Social Priority Areas' for housing investment; a tax credit scheme including child credits, replacing allowances; the expansion of farming and Common Agricultural Policy reform; six-monthly instead of annual pension and benefits reviews; assistance to the regions, small firms and manufacturing; regulation and taxation of North Sea oil; consultation with employees on decision-making in large companies; a national effort on pollution and recycling; less strict immigration rules; and a Scottish assembly. In a piece for The Times, Gilmour claimed that the government was "steering full speed ahead for the rocks".



Mr Jenkins' leadership run was backed by ex-Labour centrists - Bill Rodgers, Dick Mabon, Ian Wrigglesworth, Robert Maclennan, John Horam and Dick Taverne. He advocated: the use of oil revenues for public service investment; a major programme of infrastructure rebuilding and workforce education; no further nationalisations or privatisations; an 'inflation tax' on excessive pay rises to keep down wages and prices; Keynesian growth to reduce unemployment; action to support and decentralise industry; positive discrimination to help minorities; devolution to new Scottish and Welsh assemblies; effective conventional armed forces to lower the value of nuclear arms; and to join the European Monetary System at the earliest opportunity. Jenkins also favoured closer ties with the Liberal Party. He described the present Westminster system as "unfair and inefficient".



Mrs Williams proved incredibly popular among grassroots organisations, more of whom nominated her than Gilmour or Jenkins combined. She held the support of radicals and egalitarians less trusting of the Liberals - David Owen, Roy Hattersley, Mike Thomas, John Smith, Giles Radice, Michael O'Halloran, John Cartwright and George Brown. Williams penned a letter directly to members, vowing: integration of private schools into the comprehensive system; a massive expansion of council housing; decentralisation throughout society to the local level, including home rule for the regions and nations; a Scandinavian-style mixed economy; incentives for cooperatives and social enterprises; more healthcare funding; democratic management of the NHS and education; freedom for councils; the uprating of welfare and disability benefits to match Germany and France; a stronger drive towards multilateral nuclear disarmament; and equipping police forces as the line of defence against crime. Campaign manager Mr Owen asked Social Democrats to "face the future" by electing Williams.

The result was declared on 25th January, the anniversary of the Limehouse Declaration to establish a Council for Social Democracy.

 

[Lucon50]

Any thoughts?

 

[AH Layard]

An interesting and enjoyable read. Something doesn’t seem right about the SDP only having over 30 MPs in 1982 though if the likes of Hattersley and Smith have defected (and I assume there would a considerable number of less prominent MPs of the right/centre-right who would follow them), OTL the SDP already had 30 by the end of the 1979-1983 Parliament.

I doubt that Benn winning would have caused a complete collapse and defection of the Labour Right, from what some of the participants like Hattersley and Dianne Hayter have said later the PLP would try to maintain control over the parliamentary agenda and even Foot disliked Benn a lot at this point. It’s not implausible that some more MPs would jump after a Benn victory though, but probably not Hattersley and Smith as they had serious qualms about the SDP. The wet Tory defections are probably less explainable, Gilmour repeatedly refused OTL and him and others like Heath wanted to keep One Nation conservatism alive. It didn’t seem assured that Thatcher would succeed, and then again if she does their argument for an alternative falls on deaf ears for fellow Tories.

In any case I’m enjoying this and look forward to seeing where it goes!

 

[Lucon50]

Thanks for the feedback! I admit that in our timeline, clearly certain people did not take the jump. Here, because Heath wanted to help form the SDP (a centre party being a notion which I believe he flirted with at various points?) there was a knock-on effect. This, combined with Benn's victory in the deputy leadership election, pushed Radice, Smith and a few others to leave, pulling a reluctant Hattersley along.

While it all remained unlikely even during our reality, a movement of events could be enough to shift opinions.

As for the number of MPs, I was under the impression that the SDP had roughly 25 by 1982, plus Tory and Labour defectors equals about 30. Add on a few minor figures and you have just over. Time will tell how far this number grows.

Very glad you're enjoying this story, anyhow! The decisions of Foot and Thatcher are bound to have an influence on the success of an emerging Alliance.

 

[Lucon50]

An SDP special conference on 25th January began with the results of Shirley Williams' election as leader. Immediately after, young SDP member Charles Kennedy introduced Mrs Williams, referring to her as "Shirl the Pearl", the former government minister who expanded comprehensive schools in the 1970s and a "radical icon". Striding on to the stage, she was met with cheering and applause. Williams' speech was eloquent and direct, meeting activists and the press cameras behind with eye contact and warmth. The SDP, as well as the Liberals, were "here to stay". Smiling at Roy Jenkins (perched in the front row), she thanked him and Ian Gilmour and called the leadership race a "smashing success", declaring that both men would be welcome in her team and announcing the runner-up, Jenkins, as deputy leader in the House of Commons.



In a punchy section of the speech, Labour and the Conservatives were dismissed as "two broken parties, out of ideas and out of time". She touched on a range of progressive causes: electoral reform, civil liberties, full employment, multilateral nuclear disarmament and the UK's destiny as part of the European Community. In front-page news spreads, left-leaning media outlets would describe Mrs Williams as sounding thoughtful, logical, authentic and sincere. Her passionate advocacy of a fair and tolerant society went down well among voters, expressed through a jump in opinion polls the next day. In her final remarks on stage, Williams boldly argued the SDP were "breaking the mould of British politics", to a standing ovation.



Day two of the conference included fringe events, at which members could debate issues of all kinds. In the afternoon, the outcome of another vote, for the SDP's president, was declared. This role might be best explained as a voice of the party grassroots, in communication with the leadership and policy body (the Council for Social Democracy). The candidates were as follows: Edward Heath, Conservative prime minister between 1970 and 1974, who promised to unite all wings of the party and bring experience to the job; Bill Rodgers, one of the Gang of Four ex-Labour ministers and ally of Roy Jenkins; and Stephen Haseler, a lesser known individual who used to run the Social Democratic Alliance group and promoted himself as a "fresh face". Heath ultimately won the contest, placing former Tory 'wets' who defected to the SDP in an influential position to help shape the movement's direction.

 

[AH Layard]

Will be interesting to see the impact of a Williams leadership compared to OTL. Am surprised that the SDP membership would vote for Heath as President (memories of 1970-74 were not positive!), nevertheless it will be interesting to see the tensions of this broad church reveal themselves. Seems like the party is heading far more in the direction of a Jenkinsite Centre party than a ‘new’ Labour, which Steel will be pleased about, but Rodgers and Williams will be understandably frustrated.

Incidentally on the leadership update, I wouldn’t class Rodgers as a ‘centrist’ in the same vein as Jenkins and Taverne, he was the most left-wing of the Gang of Four, and OTL although a former protege of Jenkins, disagreed with him about what a new party should look like. In his own words, Rodgers wanted to win over ‘90% of the Labour vote‘: basically to supplant the Labour Party rather than set up a centre party equidistant between Labour and the Conservatives.

 

[Lucon50]

Appreciate the comments!

Yes, I agree that by having a few distinct wings, the SDP can presently benefit from variety of ideas but will face the same ideological challenges as any broad church party.

The outlook on Heath is mixed here - on the one hand, any serious leadership bid would have been rebuffed (as you say, his period in office was a failure) although many Tories still admired him and centrists will like his rejection of Thatcher/all she stands for. Conservative 'wets' are more numerous in the SDP here than in our timeline, also.

In terms of policy, Shirley Williams' leadership is trying to unite the SDP while pushing it in a radical, egalitarian, pluralistic direction. She might agree with David Owen on many issues, but her heart was always still with Labour to an extent and the Jenkinsites must be appeased.

Rodgers, I described as centrist when set against the likes of Tony Benn on the political spectrum overall, and within the Labour spectrum! Williams has not committed the SDP to equidistance but is seeking to undermine both major parties. Thank you for the further insight on Bill Rodgers - found it pretty hard to find his most in-depth views online!

 

[Lucon50]

Shirley Williams' frontbench team in 1982:

 

[Lucon50]

SDP members travelled home from conference in January 1982 as Mrs Williams made the final touches to her agenda. The road ahead to success at the next election was hard. Policies needed to be decided upon to offer credibility and hope to voters, so Roy Jenkins had the task of chairing a steering group on proposals to the Council for Social Democracy. Newly elected party president Ted Heath insisted on being present at the meetings, in order to liaise with groups of members across the UK. On the latter subject, it should be noted that recruits continued to sign up in droves; Williams stated her intention to better organise an activist drive by expediting the work of regional committees, who were renowned for being slow. Dick Taverne carried out this role alongside Stephen Haseler, who had come third in the presidential race, putting into practice experience from their Labour right days.



The team around Mrs Williams laid out a schedule for fundraising, public events and handling the media. As leader, she quickly began touring the country with the goal of increasing support and articulating the SDP message. Of particular focus were Labour-held seats in the Midlands and North of England, harnessing her spectacular popularity among voters - including moderate trade unionists - for electoral gain. Williams emphasised her record in the Labour governments, solidarity with workers on the picket line and dedication to progress. SDP staffers also used the opportunity to canvass opinion on policy ideas from the Williams leadership campaign, such as phasing out independent schools, more council housing and decentralisation. Other telegenic figures, especially David Owen, were often sent out in front of news cameras and made a strong impression.



At the same time, negotiations had been underway to form a pact between the SDP and Liberals. Rather than competing for similar votes, both parties largely agreed on the importance of finding common ground and pooling their efforts. A few dissenters, for example Cyril Smith, found themselves shunted out of the way as Bill Rodgers led an SDP delegation to talk with David Steel. The allocation of constituency targets for the next election was settled following some tension; both sides felt positive after by-election victories but the Liberal Party under Steel were most desperate to enter government again after sixty years in the wilderness. Therefore, he gave way to many of Rodgers' demands for SDP representation. Closer co-operation was finally achieved with the establishment of the SDP-Liberal Alliance on 3rd February 1982. Mrs Williams made the six o'clock news, appearing with Mr Steel next to her. They promised to "do things differently" and bring about the modern, radical changes necessary to fix a nation beset by strife.

 

[Lucon50]

With British politics in a state of flux, both Tories and Labour resembled vessels heading for the rocks and the new Alliance, continuing to rise. One poll put the SDP and Liberals combined at a staggering 55%, the government crashing into third place but, importantly, Michael Foot's party starting to fall in Scotland and their heartland regions. It appeared that Shirley Williams could do no wrong, except to vested interests in the Conservative-aligned press and more diehard socialists who remembered the Gang of Four's betrayal and never forgave it. Her leadership was focused on capturing the energy of Attlee and Wilson, by providing mainstream social-democratic policies and retaining liberal-minded voters put off by Margaret Thatcher's polarising monetarist economics.



Upon hearing that opinion poll, Labour began losing councillors on top of the sea of defections in Parliament. SDP-Liberal administrations in local government were set up to replace them in many areas. The organisation Militant was sweeping into representation across the land, encouraging Labour people to stand against Thatcher's changes and fight for working-class communities. However, the leftism of Militant and refusal to bow to cuts and restrictions on living standards irked some Labour MPs from the right. Now that many of these parliamentarians found themselves in the SDP, argument flared between Mrs Williams' party figures and the socialist left. Tony Benn, who squarely backed Militant from the outset, was painted as a bogeyman in the papers and Alliance circles.



The Conservatives would have piled in on this strife were it not for their own growing problems. Measures in Geoffrey Howe's fourth budget on 9th March 1982 to fiddle with taxes and increase unemployment benefits met with widespread criticism. Foot decried Howe's plan as showing "no proper understanding of the scale" of joblessness, which had skyrocketed at this point to 3 million. It received the wrath of SDP frontbencher Ian Gilmour in particular; Bill Rodgers used his opportunity as Treasury spokesperson to advocate a reflation package worth £5 billion. In the week following the budget, the prime minister repeated in tense discussions with the media that "there's no real alternative" when questioned on her policy. Williams' response was simply to make the case for the Alliance, that "we are the alternative now".



Thatcher's stubborn defence against a backdrop of industrial decline was enough to push opponents in the Conservative Party off the decks. 15th March saw James Prior resign from the cabinet, sparking a light. Nicholas Scott joined him, while Chris Patten led a backbench rebellion in a drive for the government to change course. When Mrs Thatcher refused and called them "enemies" in leaked remarks, the MPs jumped ship. The SDP welcomed each with open arms, Benn marvelled at "the ease with which these men could find kindred spirits in the splitters" and disquiet consumed the Tories. A government majority reduced to 18 was skating on thin ice. Williams announced that her party represented "the natural home for ordinary Labour folk as well as moderate Conservatives - the real, democratic, progressive choice" in partnership with a Liberal movement whose ranks swelled too with fresh recruits. With this change of fortunes in mind, David Steel prepared to give a speech that would lay out his party's policy vision, no longer the stuff of taxi-cab meetings and historical what-ifs.

 

[Lucon50]

With mass defections and soaring unemployment causing public disillusionment with her government, Margaret Thatcher was advised to resign by Conservative chairman Lord Thorneycroft and others. The prime minister is said to have "just told them to go away". Home secretary William Whitelaw proved indispensible to Mrs Thatcher, as her loyal de facto Deputy PM, in standing against the exodus of 'wet' factions on the Tory left. By 1982, GDP growth was being re-established but industrial output kept declining at a worryingly high rate, causing a balance of payments deficit in manufactured goods. The government had reversed an initial prioritisation of military spending over economics, moving to cut the defence budget instead.



Thatcher found more admiration for her housing policy. Council tenants were given the 'right to buy' their property at a discount, giving many their first home in the private sector. While popular and turning new owners into Conservative voters, this had the effect of reducing affordable housing stock and putting pressure on local government to make up the numbers. In the aftermath of riots, enterprise zones were set up in depressed inner-city boroughs to attract capital through deregulation and tax relief. In Northern Ireland, Thatcher's response was largely unchanged after a hunger strike which led to the death of Bobby Sands and nine more. The prime minister's stubborn personality certainly attracted support on the right; still, her willingness to override dissenting voices, opposition to 'consensus politics' and abrasive style produced a chorus of enemies.



On the formation of the Alliance in March 1982, Liberal leader David Steel gave a speech to the press in Manchester. He praised the SDP but warned of political chancers looking to join the party. What would the Liberals do in government? Steel first mentioned "industrial reconstruction", with an Alliance ministry ending "the damaging nationalisation vs privatisation see-saw", boosting efficiency and morale in public services, profitability in firms and encouraging cooperation at every level. He dismissed the "remorseless trend towards unsuccessful merger" and said Liberals would promote small business with financial incentives.



"Selective forward investment" spanning the rail and telephone networks, home improvements and energy conservation would "reduce the waste of unemployment" and end the "immoral" squandering of "human and natural resources" in Britain. Steel called for racial justice "in education, in employment" to provide equal rights and opportunities for black and brown citizens. This must emphasise the "rejuvenation of... inner cities", growing to cover "recruitment and promotions" with "affirmative action in the private sector". Championing liberalism would, he said, bring politics into the modern era while defending communities in an open society. As Shirley Williams was fast becoming a hero of the SDP, Steel inspired a sense of hope for the children of Gladstone and Lloyd George.

 

[Lucon50]

Surrounded by crisis, Margaret Thatcher went on air to be interviewed and respond to the rising tide of denunciation. "Prime Minister," began the journalist opposite, "for how long do you wish to go on being Prime Minister?" Readjusting slightly in her chair, Thatcher arched her back up. "Until I'm tired of it. So long as Britain needs me, I'll never be tired of it." As winter changed to spring in 1982, Conservatives and Labour could not escape division and despair. However, the burden of events and policy consequences lay at the feet of the government. Drained of some of their best talent, both parties struggled to recover dominance in the political arena. The interviewer carried on: what of the SDP? "These are the same people, many of whom sat in the last Labour government or behind them, who in fact put us under the thumb of trade unions and got industries nationalised," Thatcher argued. "Some are exactly the same people who might be sat in government now, alongside Wedgewood Benn, taking the party further and further left."

The Prime Minister continued by spinning the dire economic picture into one in which the government had "laid the foundations for a competitive industry", hailing this as "quite some achievement". On 3 million unemployed: "We create the jobs of the future by taking on new technology, getting rid of old labour practices, improving productivity". Citing academics and rival politicians from all sides, the interviewer mentioned reflating the economy as a way to kickstart demand in the Keynesian fashion. Mrs Thatcher, becoming increasingly isolated, was adamant. "Reflation means unsound, dishonest money. It would raise inflation, diminish the value of savings and make it more expensive to invest." Swiping at the band of ex-Tories who had crossed the floor, the Prime Minister argued her party's case for unity. "We Conservatives believe in a free enterprise society under the rule of law, sturdily robust to defend itself and willing always to take a full part in the world, through Europe and our relationships across the Atlantic."