Margaret Thatcher: The Autobiography

At Flood Street it was agreed that I should address my core campaigners in Committee Room 13 on Monday night. I could not tell them anything about campaigning. They had forgotten far more about political tactics and indeed political skulduggery than I would ever know. So instead I spoke and answered questions on my vision of a Conservative society from 10.30 till midnight. It was marvellous to be able to speak from the heart about what I believed, and to feel that those crucial to my cause were listening.

The Heath camp now changed the direction of their campaign. Ridicule had failed. Instead, the accusation became that the sort of Conservatism I represented might appeal to the middle-class rank and file supporters of the Party, particularly in the South, but would never win over the uncommitted. My article in the Daily Telegraph, which appeared on Thursday 30 January, took this head-on:

I was attacked [as Education Secretary] for fighting a rearguard action in defence of ‘middle-class interests’. The same accusation is levelled at me now, when I am leading Conservative opposition to the socialist Capital Transfer Tax proposals. Well, if ‘middle-class values’ include the encouragement of variety and individual choice, the provision of fair incentives and rewards for skill and hard work, the maintenance of effective barriers against the excessive power of the state and a belief in the wide distribution of individual private property, then they are certainly what I am trying to defend …

This theme – the return to fundamental Conservative principles and the defence of middle-class values – was enormously popular in the Party. I repeated it when speaking to my Constituency Association the following day. I rejected the idea that my candidature was representative of a faction. I emphasized that I was speaking up for all those who felt let down by recent Conservative Governments. I was also prepared to accept my share of the blame for what had gone wrong under Ted.

But [I added] I hope I have learned something from the failures and mistakes of the past and can help to plan constructively for the future … There is a widespread feeling in the country that the Conservative Party has not defended [Conservative] ideals explicitly and toughly enough, so that Britain is set on a course towards inevitable socialist mediocrity. That course must not only be halted, it must be reversed.

I knew from my talks with Conservative MPs that there were many contradictory factors which would influence their votes. Some would support Ted simply because he was the Leader in situ. Many would not dare go against him because, even after two successive election defeats, he inspired fear that there would be no forgiveness for mutiny. Moreover, many thought that I was inexperienced – and as I had publicly admitted, there was more than a little truth in that. There was also some suspicion of me as too doctrinaire and insensitive. And then, of course, there was the rather obvious fact that I was a woman.

As a result of these conflicting considerations, many MPs were undecided. They wanted to be able to talk to me, to find out what I was like and where I stood. Airey and his team would send these Members along to see me in the room of Robin Cooke – one of our team – in the House where, singly or in small groups, over a glass of claret or a cup of tea, I would try to answer their points as best I could. Ted, by contrast, preferred lunch parties of MPs where, I suspect, there was not much straight talking – at least not from the guests. Doubtless his campaign team marked them down as supporters, which many were not.

The press on Monday 3 February was full of the fact that the National Union of the Party had reported that 70 per cent of Constituency Associations favoured Ted Heath and that the great majority of Conservative supporters agreed with them. We were not surprised by this. The Conservative Associations, nudged by Central Office, were understandably loyal to the existing Leader and the opinion poll results reflected the fact that I was a relatively unknown quantity outside the House of Commons. But obviously it did not help, and it certainly boosted confidence in the Heath camp. Indeed, there was evidence of a late surge of support for Ted among MPs. Airey’s and Bill’s final canvass returns suggested that I was neck and neck with Ted, with the third candidate, the gallant and traditionalist Hugh Fraser, picking up a few right-wing misogynist votes. But I was told that I came over quite well on the World in Action television programme that night.

On Tuesday 4 February, the day of the first ballot, I was up early to prepare Denis’s breakfast and see him off to work before driving from Flood Street to the House of Commons, exhibiting what I hoped was a confident smile and a few friendly words for the press gathered outside. For me it was another day on the Finance Bill Committee, while in another House of Commons Committee Room the voting for the leadership took place. The ballot was due to close at 3.30. I went up to Airey Neave’s room to await the result. Bill Shelton represented me at the count and Tim Kitson represented Ted. I believe that even after they had heard the sombre news of the outcome of that day’s voting the Heath camp had hoped that the proxy votes, counted last, would see Ted through. But most of the proxies also went to me. I was trying to concentrate on anything other than the future when the door opened and Airey came in. Softly, but with a twinkle in his eye, he told me: ‘It’s good news. You’re ahead in the poll. You’ve got 130 votes to Ted’s 119.’ Hugh Fraser had sixteen.

I could barely believe it. Although I was thirty-one votes short of the required margin to win outright on the first ballot – 50 per cent plus a lead of 15 per cent of those eligible to vote – and therefore there would have to be a second round, I was decisively ahead. I had no doubt that if I had failed against Ted that would have been the end of me in politics. As it was, I might be Leader. Who knows? I might even be Prime Minister.

My own surprise at the result was as nothing compared to the shattering blow it had delivered to the Conservative establishment. I felt no sympathy for them. They had fought me unscrupulously all the way. But I did feel sorry for Ted, who quickly announced his decision to resign as Leader and not to contest the second ballot. Willie Whitelaw now put his name forward and immediately became the favourite. I myself thought that Willie had a very good chance of winning; and though I could not seriously imagine him changing the direction of the Party as I wished, it did please me to think that between us there would be none of the bitterness which had soured my relations with Ted. Jim Prior, John Peyton and Geoffrey Howe also entered the contest. I was a little worried about Geoffrey’s candidature because he held similar views to mine and might split the right-wing vote, which in a close contest could be crucial. Hugh Fraser withdrew and urged his supporters to vote for Willie.

In fact, without knowing it, I had what the Americans call ‘momentum’. I had always reckoned that a substantial number of those voting for me in the first round would only do so as a tactical way of removing Ted and putting in someone more acceptable but still close to his way of thinking, such as Willie. But in fact my support actually hardened.

Certainly, many people in the Party at Westminster and outside it were now desperately anxious to bring the whole process to a swift end. The very circumstances which had counted against me in the first ballot now assisted me as the leading candidate in the second. The Daily Telegraph, an important barometer of Tory grassroots feeling, swung decisively onto my side.

Willie and I both attended the Young Conservative Conference at Eastbourne on Saturday 8 February. One woman on the platform was dressed in funereal black and glowering. I was rather concerned and asked her whether anything was wrong. ‘Yes,’ she said. ‘I’m in mourning for Mr Heath.’ There were few other mourners present. Willie and I were photographed as we kissed for the cameras. I remarked: ‘Willie and I have been friends for years. I’ve done that to Willie many times and he to me. It was not that difficult for him to do it, I think.’ Willie replied: ‘I’ve kissed her often. But we have not done it on a pavement outside a hotel in Eastbourne before.’ It was all good fun and the atmosphere lightened.

I used my own speech to the Conference to give a full-blooded rendering of my views. I said:

You can get your economic policies right, and still have the kind of society none of us would wish. I believe we should judge people on merit and not on background. I believe the person who is prepared to work hardest should get the greatest rewards and keep them after tax. That we should back the workers and not the shirkers: that it is not only permissible but praiseworthy to want to benefit your own family by your own efforts.

Conservatives had not heard this sort of message for many years, and it went down well.

On Tuesday the second ballot took place. Again I waited nervously in Airey’s room. And again it was Airey who came to give me the news. He smiled and said: ‘You are now Leader of the Opposition.’ I had obtained 146 votes to Willie’s seventy-nine. The other candidates were out of the picture.* (#ulink_dba0ea8b-8e66-5dee-82c5-754436b14e56)

I now had to hurry down to the Grand Committee Room, off Westminster Hall, where the press were waiting. I told them: ‘To me it is like a dream that the next name in the lists after Harold Macmillan, Sir Alec Douglas-Home, Edward Heath, is Margaret Thatcher. Each has brought his own style of leadership and stamp of greatness to his task. I shall take on the work with humility and dedication.’

Then it was off for the Leader’s traditional first visit to Conservative Central Office. On entering, I could not help remembering how hard some of the people there had worked to stop my becoming Leader.

Then I was driven back to Bill Shelton’s house in Pimlico for a celebration with my friends. Denis was there. I had tried to telephone the news through to him myself, but somehow the Press Association beat me to it. Mark learned the news while he was at work as a trainee accountant. As for Carol, she could not be disturbed until she had finished the solicitors’ exam she was taking that afternoon.

Only much later that night, after I had returned from dinner with the Chief Whip, Humphrey Atkins, could all of the family celebrate the good news. It was wonderful to be together. I suspect that they knew, as I did, that from this moment on our lives would never be quite the same again.

Nor would the Conservative Party.

* (#ulink_2947bccc-2efd-5057-bb24-431b601429cc) Jim Prior and Geoffrey Howe had nineteen votes each and John Peyton eleven.

CHAPTER NINE (#ulink_ec29a07c-d1bf-5db9-86e7-b6419b9b3efe)

A Bumpy Ride (#ulink_ec29a07c-d1bf-5db9-86e7-b6419b9b3efe)

Leader of the Opposition February 1975–March 1977

MY FIRST TASK was to compose the Shadow Cabinet. I met Humphrey Atkins, the Chief Whip, in the Leader of the Opposition’s room in the House of Commons where we had an excellent dinner prepared by his wife Maggie. Humphrey Atkins had, of course, been Ted’s appointment, and occupying the position he did had not declared his support for one side or the other in the leadership contest. But he was amiable and amenable and, as Chief Whip, was possessed of the unique fund of knowledge and gossip so essential when making high political appointments. I told Humphrey that although there were some people, like Keith Joseph and Airey Neave, to whom I felt a special obligation, I did not want to make a clean sweep of the existing team. After the bitterness of the contest with Ted there had to be sufficient continuity to keep the Party together.

The more we talked, however, the clearer it became to both of us that all the other dispositions depended upon Ted. If he wished to serve under my leadership – and I had publicly committed myself to offering him the opportunity during the leadership campaign – he might decide that he wanted one of the three main Shadow posts, or possibly a post without portfolio. I privately hoped that he would not take up my offer at all. Although none of us knew how enduring his sense of injury would be, it was already hard to imagine Ted behaving like Alec Douglas-Home and fitting in as a loyal and distinguished member of his successor’s team. In any case, the newspapers were saying that Ted had no intention of serving. But I had to know for myself. Having sounded Ted out and received the impression that the speculation about his intentions was accurate, Humphrey reported back to me. But I had said I would make the offer, and the following morning I was driven to Ted’s house in Wilton Street to do it in person.

Tim Kitson, Ted’s PPS, showed me into the downstairs study. Ted was sitting at his desk. He did not get up; and I sat down without waiting to be asked. There was no point in pleasantries. I could guess what he thought about recent events and about me. Without offering a specific post, I asked him whether he would join the Shadow Cabinet. He said no, he would stay on the backbenches. The interview was effectively at an end. I knew that it must be painful and probably humiliating for him. But I also knew that if I walked out of Wilton Street past the assembled press after just a few minutes, the lunchtime news would be dominated by stories of snubs and splits. So I spun things out a little by asking his views about Labour’s promised referendum on Britain’s continuing membership of the European Economic Community and, in particular, whether he would lead the Conservative campaign. Again, he said no. I had done all I decently could to keep Ted within the fold and to ensure the meeting did not end too abruptly. But only five minutes or so had elapsed when I left Ted’s study. So Tim Kitson (who was equally aware of the risk of bad publicity) and I talked inconsequentially for another quarter of an hour to fill out the time before I left the house. Respecting, as I thought, Ted’s confidence, I did not even tell Airey Neave, who was setting up my office, the details of what had transpired. I made it public later only in order to set the record straight. I returned to the House of Commons and told Humphrey Atkins that Ted would indeed not be in the Shadow Cabinet.

Next, Robert Carr, who had been acting Leader of the Party during the leadership campaign, wanted to see me. He had, of course, been close to Ted and I could well understand if he did not relish the prospect of serving under me. In fact, when I saw him he made it quite clear that the only post he would accept was that of Shadow Foreign Secretary. I said that I could not promise him that. Not only was I unwilling to have my hands tied before I had properly considered the shape of the team as a whole: I was not convinced that Robert Carr would have a place in it.

By contrast, Willie Whitelaw definitely had. He had demonstrated his popularity in the leadership election. He was immensely experienced and his presence would be a reassuring guarantee to many on the backbenches that evolution rather than revolution was the order of the day. Perhaps both of us already sensed that we could form a strong political partnership, our strengths and weaknesses complementing one another’s. Although I could not as yet offer him a particular portfolio, I asked Willie to be Deputy Leader of the Party, and he accepted. But his loyalty was not contingent on that; he was loyal from the first.

That evening I chaired the Shadow Cabinet for the first time. The meeting had a slightly unreal atmosphere since none of those present had yet been formally reappointed, and some would not be. Quintin Hailsham congratulated me on the Shadow Cabinet’s behalf and pledged their loyalty and co-operation. I felt that he at least probably meant it. I said that Willie had agreed to be Deputy Leader and that Ted had turned down my offer of a place in the Shadow Cabinet. Willie then said that he had accepted the Deputy Leadership at once and looked forward to serving in this capacity. The formalities thus indicated a kind of armed truce between the competing views and personalities.

The following evening, I made my first appearance as Leader at the 1922 Committee meeting. My relations with the wider Parliamentary Party were much easier than with the Shadow Cabinet. As I entered, everyone rose to their feet. Edward du Cann presented me with an unsigned Valentine card (a day early) which would join the other Valentines and roses that accumulated at Flood Street.

In the next few days my time was taken up in meeting journalists, discussing arrangements for my office and fulfilling long-standing constituency engagements. There were few opportunities to sit down with Humphrey and Willie to discuss Shadow Cabinet membership. In any case, I wanted the weekend to make my final decisions. But the delay encouraged speculation. According to the press a battle was under way to prevent Keith Joseph becoming Shadow Chancellor. In fact, he did not ask for the position nor did I offer it.

Willie was the first to come in. I gave him a roving brief which included the issue of devolution – which already spelt political difficulties that he, as both a former Chief Whip and a Scot representing an English seat, might be able to tackle. Then I saw Keith Joseph, whom I asked to continue with his Shadow Cabinet responsibility for policy and research. In a sense, Willie and Keith were the two key figures, one providing the political brawn and the other the policy-making brains of the team. I also felt that Keith must continue his intellectual crusade from the Centre for Policy Studies for wider understanding and acceptance of free enterprise economics. I was under no illusion that my victory in the leadership election represented a wholesale conversion.

My next visitor was Reggie Maudling. I suspect that, although he had made it clear publicly that he was willing to serve, he was as surprised as the press when I made him Shadow Foreign Secretary. Though widely praised at the time, this was not a good appointment.

Still less of a soulmate was Ian Gilmour. He had been a strong partisan of Ted, and he lacked the support or standing which might have made him politically costly to dispense with. But I valued his intelligence. I felt that he could make a useful contribution as long as he was kept out of an economic post, to which neither his training nor his aptitudes suited him. I asked him to be Shadow Home Secretary.

Michael Heseltine, who now came in to see me, had a much more flamboyant personality than Ian’s, although they shared many of the same views. I asked him to stay on as Shadow Industry Secretary. It was a portfolio which gave full scope to his talent for Opposition, since it fell to him to fight the Labour Government’s main nationalization proposals. What I did not fully grasp at this time was how ideologically committed he was to an interventionist approach in industry which I could not accept.

I asked Peter Carrington to stay on as Leader of the House of Lords. Again, I had no illusions about Peter’s position in the Tory Party’s political spectrum: he was not of my way of thinking. He had, of course, been in Ted’s inner circle making the political decisions about the miners’ strike and the February 1974 election. But since we lost office he had proved an extremely effective Opposition Leader in the Upper House, and as a former Defence Minister and an international businessman he had wide experience of foreign affairs. Admittedly, he was likely in Shadow Cabinet to be on the opposite side to me on economic policy. But he never allowed economic disagreements to get in the way of his more general responsibilities. He brought style, experience, wit and – politically incorrect as the thought may be – a touch of class.

Geoffrey Howe had his own droll wit. But in most other ways he was a very different politician from my other appointments that day. I would in any case have felt obliged to give Geoffrey a Shadow Cabinet post, simply because he was a candidate against me and I wished to unify the Party as much as possible. But it was a calculated gamble to make him Shadow Chancellor. Geoffrey was to have a difficult time both trying to resolve our divisions on economic policy and in defending our case in the House. I would be put under a good deal of pressure to remove him and find someone better able to take on the Chancellor, Denis Healey. But I knew that Geoffrey’s difficulties, like mine, were more the result of circumstances than lack of native talent. By the time our period in Opposition was approaching its end he had become indispensable.

After careful thought I decided to keep Jim Prior as Shadow Employment Secretary. This was rightly taken as a signal that I had no immediate plans for a fundamental reform of trade union law. It was Jim’s strong conviction that our aim should be to establish both that we accepted the existing trade union law, with perhaps a few alterations, and that we saw the union leaders as people with whom we could deal. Such an approach made more sense at the beginning of the period in Opposition than at the end of it.

Airey Neave had already privately told me that the only portfolio he wanted was that of Shadow Northern Ireland Secretary. His intelligence contacts, proven physical courage and shrewdness amply qualified him for this testing and largely thankless task. The other appointments were less strategically crucial. Two offers of Shadow Cabinet posts were turned down – one to John Biffen, who would in fact join later, and the other to Edward du Cann, whose early campaign team had provided the nucleus of mine. Edward stayed on as Chairman of the 1922 Committee, which was probably far more useful to me.

The next day (Tuesday) I had some less pleasant business to transact. At 10.30 Peter Walker came in. There was no personal warmth between us. He had been one of the most effective members of Ted’s inner circle, and he opposed with vigour and eloquence the approach which Keith and I were committed to adopt. He clearly had to go.

I confirmed in a discussion with Geoffrey Rippon, who now came into my room, that he did not wish to serve: that suited us both. I then saw Nicholas Scott, who had shadowed Housing. He too was on the left of the Party. The conversation was made slightly easier by the fact that I had absorbed the Housing portfolio into the wider Environment one. His job had been shot from under him.

I left to last the interview with Robert Carr. I told him that I had given the Shadow Foreign Secretary post to Reggie Maudling, which he presumably knew already. Perhaps he had just bid too high, or perhaps he might have been persuaded to stay in another capacity. But I was not keen to have another strong opponent in any position on the team.

The published Shadow Cabinet list (to which Peter Thorneycroft as Party Chairman and Angus Maude as Chairman of the Conservative Research Department would later be added) was rightly seen as a compromise. As such, it annoyed the left of the Party who disliked my dropping of Robert Carr, Peter Walker and Nicholas Scott: it also disappointed the right who worried about Reggie Maudling’s return, the fact that Geoffrey and not Keith was Shadow Chancellor and the lack of any new right-wing faces from the backbenches. In fact, given the fragility as yet of my position and the need to express a balance of opinion in the Shadow Cabinet to bring the Party together, it was a relatively successful operation. It created a Treasury team that shared my and Keith’s views on the free market economy, shifted the balance of opinion within the Shadow Cabinet as a whole somewhat in my direction and yet gave grounds for loyalty to those I had retained from Ted’s regime. I felt I could expect support (within limits) from such a team, but I knew I could not assume agreement – even on basic principles.

Airey Neave and I decided that there would have to be changes at Conservative Central Office. Constitutionally, Central Office is the Leader of the Party’s office: events during the leadership campaign had convinced me that it would be very difficult for some of those there to act in that capacity under me.

At Central Office I wanted as Chairman an effective administrator, one preferably with business connections, who would be loyal to me. I had always admired Peter Thorneycroft and in retrospect I thought that his courageous resignation on the issue of public expenditure in 1958 had signalled a wrong turning for the post-war Conservative Party. As part of that older generation which had been leading the Party when I first entered Parliament, and as chairman of several large companies, Peter seemed to me to fit the bill. But how to persuade him? It turned out that Willie Whitelaw was related to him, and Willie persuaded him to take the job. It would have taxed the energy of a much younger man, for the Party Chairman has to keep up morale even in the lowest periods, of which there would be several. Peter had the added problem that at this stage most of the Party in the country accepted my leadership only on sufferance. This would gradually change after the 1975 Party Conference. But it took a good deal longer – and some painful and controversial personnel changes – before I felt that the leading figures at Central Office had any real commitment to me. Peter gradually replaced them with loyalists; I never enquired how.

Alistair McAlpine’s arrival as Party Treasurer certainly helped. Although a staunch Tory from a family of Tories, Alistair had to turn himself into something of a politician overnight. I told him that he would have to give up his German Mercedes for a British Jaguar and he immediately complied. But I had not prepared him for the host of minor but irritating examples of obstructive behaviour which confronted him at Central Office, nor for the great difficulties he would encounter in trying to persuade businessmen that in spite of the years of Heathite corporatism we were still a free enterprise Party worth supporting.