What is thatcherism?

Thatcherism describes the political ideas and policies of the Conservative governments led by Margaret Thatcher from 1979 to 1990. It combined free markets, privatisation, lower direct taxes and curbs on trade union power. It also stressed strong defence, traditional values and individual responsibility.

Thatcherism emerged after the economic troubles of the 1970s, including high inflation, strikes and an IMF loan in 1976. Thatcher argued the state had grown too big and that unions held too much power. Her government aimed to control inflation by limiting the money supply, an approach called monetarism. She was the UK's first woman Prime Minister and won three general elections in a row.

Key policies included selling state industries such as British Telecom, British Gas and British Steel. Council tenants could buy their homes through Right to Buy. The top income tax rate fell from 83% to 40%, the City was deregulated and new laws restricted strikes. The 1984 to 1985 miners' strike became a defining conflict.

Thatcherism remains deeply divisive. Supporters credit it with reviving the economy, taming inflation and spreading home and share ownership. Critics blame it for mass unemployment in the early 1980s, the collapse of mining and manufacturing communities and rising inequality. Its influence on later governments of both main parties was large. Many of its reforms, such as union laws and privatised utilities, were largely kept by later governments.

Where you've seen it

The UK under the Conservatives in the 1980s, the US in the 1980s, New Zealand's reforms in the 1980s, and the global trade deals of the 1990s.

In the UK today

Debates over privatised water, rail and energy, outsourcing of public services, and whether the economy relies too much on finance are often framed as arguments about neoliberalism.