The Banality of Revolution: Bill Rodgers in Power
Living on the Edge: The return of economic prosperity in the 1980s saw an explosion of new fashions and technology
Labour had returned to power in 1981 mainly on the back of popular discontent with Liberal rule but its programme for government had been vague. When he got into office, Rodgers delegated much of the responsibility for what became the Hogg-Manley Reforms to Roy Jenkins and Peter Shore while he attempted to get to grips with the domestic problems that the Thatcher government had left behind it. Despite the attention of historians being focused on her government’s handling of Commonwealth and environmental affairs, at the time the foremost legacy of Thatcher’s premiership in Britain was thought to be her and Keith Joseph’s savage cuts to the welfare state. Labour had opposed the Liberals’ cuts to social security but it was not clear, now they were in power once more, whether Labour intended to simply reverse them or do something else. In general terms, there were three main schools of thought within the party.
The first school was dominated by what was generally considered to be the left of the party (although in this context they were kind of the most conservative) but had adherents from across most of the party’s political spectrum. In general terms, these people were in favour of simply returning to the model which had obtained in the UK since 1945. In practice, this would involve simply reversing Joseph’s budgets, with a few additions or subtractions around the edges (according to the flavour of the individual MP). A prominent exponent of this tendency was Michael Foot but his appointment as Education Secretary after the 1981 election indicated that he would be less influential in Rodgers’ final economic decision-making.
The second school was much smaller, made up of a small coterie of MPs on the right wing of the party. They had mixed feelings about many of the Thatcher-era cuts, viewing the 45-76 welfare state as in need of being trimmed. In practice, many of them viewed welfare as of secondary importance to other government programmes such advancing equality of opportunity and the maintenance of markets. Roy Jenkins was associated with this grouping but was, in truth, never fully of it and its informal cabinet-level spokesman was David Owen. Owen’s appointment as Defence Secretary was, like the appointment of Foot to Education, regarded by many as a sign that his tendency was being sidelined.
The final school was arguably the smallest but may have been the most adventurous. This school saw the question of welfare reform not just as one of whether to reverse or retain the Thatcher-era cuts but as an opportunity to replace them with something else. This attracted figures from across the political spectrum, from the technocratic Tony Benn through to Shirley Williams on the left and John Smith closer to the right. In many respects they were less of a coherent wing than a kind of parliamentary think tank - with some favouring an American-style guaranteed jobs programme, others a universal basic income and others nursing even more adventurous ideas. But the force and energy of their ideas, alongside the heterodox voices advancing them inside the party, meant that they attained a level of influence outside of their mere numbers.
In this context, Rodgers’ managerial, conciliatory style proved immensely valuable not only in making sure that the parliamentary party remained united but also that the policy debates were carried out internally rather than in the pages of the press. An informal ‘welfare cabinet’ was put together to manage and coordinate welfare reforms, consisting of Rodgers himself, the Chancellor Denis Healy, Home Secretary Roy Hattersley, President of the Board of Trade Tony Benn and Welfare Minister Shirley Williams. With figures drawn from across the party’s political spectrum, it also demonstrated the government’s openness to new ideas.
Over the next five years, Rodgers’ government rolled out a series of policies that were a mixture of fudge and ambition. Most of the Thatcher-era cuts were rolled back, with between two-thirds and three-quarters being simply reinstated. (Estimates vary in this context due to the fact that certain benefits were reinstated with different methods of calculating them.) In particular, social security payments relating to disability and maternity assistance were brought back in 1981 and increased in 1983 and 1984 as the economy recovered.
In the winter of 1982/3 the government unveiled the first part of its most ambitious reform package: an unconditional income guaranteed to all families. A trial run began in the Irish province of Ulster in January 1983, with plans for a national roll-out in the 1984/85 financial year in the event of successful results there. Millions of pounds were budgeted to provide the 1,600,000 people in Ulster with a guaranteed income of £200 a month. The trial had three big questions that it needed to answer: firstly, would people work less (or at all) with a guaranteed income?; secondly, would the program be too expensive; and, finally, would it be politically feasible?
Contrary to many of the predictions of its opponents, researchers found that the reduction in working hours was small to negligible. What declines did occur were mostly attributed to people with young children. Other declines were thought to have been compensated by people performing other useful activities, such as a search for better jobs. One mother took a night course in psychology and got a job as a researcher at Queen’s University. Another took acting classes while her husband indulged his previously private passion for classical music composition. Amongst people in their teens and twenties there was an increase in part-time and further education, including re-training for new jobs. Although it still had its opponents in the cabinet (not least Healy, who was quietly reshuffled in February 1984 in favour of Smith), the government announced that the plan would be rolled out across the entire nation for the financial year 1984/85.
After 1982, the economy began to return to growth, averaging 4% per annum by the beginning of 1986. There remains a significant controversy about the reasons for this growth, with some people identifying the calming effects of the Hogg-Manley Reforms, while others give credit to the increased profits of the SWF following the successful diversifying of its portfolio and an oil-price spike in the early 1980s.
The final major development in Rodgers’ first term was one which owed little to him personally. Since its rollout over the whole of the UK government service in 1979, the internet had enjoyed great success. In March 1980 the Commonwealth bureaucracy in London was connected and in September Donald Davies produced the Internet Protocol Suite (“IPS”). A landmark work, the IPS was a set of communications protocols which provided a means by which the internet could be expanded to other countries. The Commonwealth Assembly adopted a series of regulations which provided the legal means for this to take place. Inspired by Attlee’s Atoms for Peace programme in the 1950s, the Commonwealth regulations provided for an expansion to other Commonwealth nations, not outside it.
In October 1980, the first trans-Atlantic high speed link was completed between the National Physical Laboratory outside Liverpool and McGill University in Canada. In April 1981, Peter Kirstein began writing ‘Explorer,’ the world’s first web browser, work which he completed three months later. On 1 August 1981 Explorer was rolled out across all government institutions in the Commonwealth. In October 1984, the British Library was connected to the internet and began the process of digitising its entire catalogue. In May 1985, the first private institutions, commercial deposit banks, began to be connected, followed by the CBC and other broadcast media institutions three months later. Finally, on 6 August 1986 the internet was made open to the public.
The mood of the country was buoyant once more with the successful launch of the CSA space station ‘Gaia’ in January 1986. With the Liberals mired in civil war between the ‘Thatcherites’ (or ‘neo-Gladstonians’ as they called themselves) and moderates and Labour getting credit for solid economic management, Rodgers’ dissolved Parliament and went to the country in spring 1986.