The key policy declared at the Lib Dems’ Bournemouth conference last month was not the famous ‘Tax Cuts’. It was that the State should shrink. In the run-up to conference, argument raged as to how big the tax cuts might be, and who should receive them. Only one decision appeared to be cast in stone: State spending should shrink, by a hefty £20 billion.
This stance was bolstered by bold new policy declarations on education and health. Our ‘free schools’ policy would put large sums of public money into support for privately-run schools. Meanwhile, the National Health Service should be reformed to require ordinary NHS patients to pay for some of the most expensive drug treatments – or else go without. This last step outflanked the Tories’ Andrew Lansley, whose perceptive comment was, “If the NHS could simply exclude treatments and expect patients to pay up, the values of the NHS could be progressively undermined.”
Today, these policies lie in ruins. Not – or at least not yet – because Lib Dem members across the country have woken up, recognised a betrayal of the Party’s long-held principles, and rebelled en masse. Instead, events have taken charge.
We have seen a massive growth in State power – as the only effective means of preventing financial meltdown. Bemused neo-con Bushites, so long accustomed to treating government as the humble servant of global business enterprise, found themselves forced to let government take control. In the UK, Treasury civil servants became the new masters of the financial universe. Tony Blair, who so fretted that Brown might spoil his precious legacy, had probably not actually feared the return of Clause Four socialism. But that is effectively what has happened.