Showing posts with label Chris Patten. Show all posts
Showing posts with label Chris Patten. Show all posts

Tuesday, April 14, 2026

The myth that Labour's tax policies lost them the 1992 election


Why did John Major win the 1992 election when most pundits expected Neil Kinnock's Labour Party to be the victors?

Immediately after the contest, a consensus developed that the reason was the effectiveness of the Conservatives' campaign against Labour's economic policies. This view was certainly advanced by the Tories themselves, as its acceptance would make Labour more timid about challenging Thatcherite economics in future. 

And it was advanced by the head of the Tory campaign, Chris Patten, perhaps as a way of burnishing his reputation and consoling himself after he lost his own seat of Bath to the Liberal Democrats.

But I have always doubted this explanation. I remember thinking that it did not chime with what I had heard during the campaign from voters or from colleagues at work.

I recently came across an article that suggests I was right to be sceptical. In May 1994 the Independent published an article by Anthony Heath, Roger Jowell and John Curtice on the findings of their study of the 1992 election.

They go through the various explanations that had been offered for Labour's defeat and find them all wanting – notably the claim that "It's The Sun Wot Won It" made by, you guessed it, The Sun itself.

Here are Heath et al. on the suggestion that it was Labour's tax policies that had been decisive:

Labour's proposals for taxation and national insurance contributions – outlined in John Smith's 'alternative Budget' – were relentlessly attacked by the Conservatives. Faced with the prospect of a cut in their disposable income, the argument runs, voters had second thoughts about the wisdom of letting Labour in.

But our surveys find little evidence to back this argument. It arose because the polls showed a small Labour lead throughout a campaign in which taxation was one of the dominant issues and yet the Tories won. Our research, however, confirms that the pollsters had it wrong all along: they consistently underestimated the Tory vote. The Conservatives were ahead throughout the campaign. 

There was a late swing, but far too small to account for Labour's defeat. And the people who deserted Labour were not particularly averse to high taxation; rather, they seemed to have relatively little faith in Labour's ability to improve services such as health and education.

In fact, the authors find nothing in the 1992 election campaign had much of an effect on the final outcome.

I did receive intimations that there had been a late swing to the Tories. During the campaign, I'd heard stories of Liberal Democrat workers putting money on Nick Harvey gaining North Devon with a large majority, when ultimately he gained it with a small one. 

And I was told to put money on the Lib Dems in Falmouth and Camborne, because Sebastian Coe was going down very badly there. Luckily I didn't, because Coe held the seat for the Tories. He lost to Labour in 1997 and the Lib Dems finally took it in 2005.

My own theory was that voters had chosen John Major over Neil Kinnock. After Margaret Thatcher's late Sturm und Drang years, Major was a breath of fresh air. Those who only know of him as a figure of fun may be surprised at this, but if they study his statesmanlike conduct since losing power they may see why people found him attractive in 1992.

Neil Kinnock, by contrast, had been leader of the opposition for nine years. Some of the attacks on him as a "Welsh windbag" bordered on the racist, but, boy, he did talk a lot. And, burdened by cares of leadership, he had lost the wit and sparkle that had made his name as a backbench MP – notably on Jimmy Young's Radio 2 programme.

So that's why I didn't believe in 1992 that the Tories' attacks on Labour's tax policies had won them the election. And, going by Heath et al.'s study, I was right not to believe what became the received wisdom on that contest.

This question is not just of historical interest. Rachel Reeves's pledge not to increase income tax, national insurance or VAT, which has backed her into such a corner, was made because of a more or less conscious memory of 1992.

Saturday, July 15, 2023

Commons intelligence committee questions Danny Alexander's role with the Asian Infrastructure Investment Bank

Embed from Getty Images

From this morning's Guardian:

David Cameron’s appointment as vice-chair of the £1bn China-UK investment fund and Sir Danny Alexander’s appointment as vice-president of the Asian Infrastructure Investment Bank [AIIB] were in part engineered by the Chinese state, parliament’s intelligence and security committee found.

Their appointment was to lend credibility to Chinese investment as well as the broader Chinese brand, according to confidential evidence given to the intelligence watchdog.

The report goes on to quote the evidence to the committee of Chris Patten, the last governor of Hong Kong:

"I think they [China] probably think we are not entirely reliable useful idiots … I think they regard us as an economic opportunity and as an opportunity to, through elite capture, through the cultivation of useful idiots, through playing on things like the ‘golden age’ of British-China relations, getting us by and large corralled into doing the sort of things they would like us to do."

And it reminds us that, despite opposition from Washington, the UK played a big part in the creation of the AIIB. Good relations with China were seen as a particular enthusiasm of George Osborne.

Danny Alexander was appointed to a role with it after losing his seat at the 2015 general election. 

At the time this was attributed to the influence of Osborne, whose number two Alexander had been at the Treasury under the Coalition. I was reminded of a younger son being sent out to the Empire to make his fortune.

The Guardian also mentions the dramatic resignation last month of the AIIB's global communications chief Bob Pickard. He said on Twitter at the time.

The bank is dominated by Communist party members and also has one of the most toxic cultures imaginable. I don’t believe that my country’s interests are served by its AIIB membership.

Happy to be gone from that cesspool. The Communist party hacks hold the cards at the bank. They deal with some board members as useful idiots. I believe that my government should not be a member of this PRC [Chinese] instrument. The reality of power in the bank is that it’s CCP from start to finish.

Danny Alexander was quoted by Reuters as saying Pickard's allegations that the Chinese Communist Party has undue influence on the bank "are without any foundation whatsoever".

You can read the intelligence and security committee press release about its new China report online, but the full report does not seem to be on its website yet.