On Friday afternoon we met, a tired and downcast fag-end of a Cabinet, to be asked by Ted Heath for our reactions as to what should now be done. There were a number of options. Ted could advise the Queen to send for Harold Wilson as the leader of the largest single party. Or the Government could face Parliament and see whether it could command support for its programme. Or he could try to do a deal with the smaller parties for a programme designed to cope with the nation’s immediate difficulties. Having alienated the Ulster Unionists through our Northern Ireland policy, this in effect meant a deal with the Liberals — though even that would not have given us a majority. There was little doubt from the way Ted spoke that this was the course he favoured. We argued in circles about these possibilities.
My own instinctive feeling was that the party with the largest number of seats in the House of Commons was justified in expecting that they would be called to try to form a government. But Ted argued that with the Conservatives having won the largest number of votes, he was duty bound to explore the possibility of coalition. So he offered the Liberal Leader Jeremy Thorpe a place in a coalition Government and promised a Speaker’s conference on electoral reform. Thorpe went away to consult his party. Although I wanted to remain Secretary of State for Education, I did not want to do so at the expense of the Conservative Party’s never forming a majority government again. Yet that is what the introduction of proportional representation, which the Liberals would be demanding, might amount to. I was also conscious that this horse-trading was making us look ridiculous. The British dislike nothing more than a bad loser. It was time to go.
When we met again on Monday morning Ted gave us a full account of his discussions with the Liberals. They had in any case not been willing to go along with what Jeremy Thorpe wanted. A formal reply from him was still awaited. But it now seemed almost certain that Ted would have to tender his resignation. The final Cabinet was held at 4.45 that afternoon. By now Jeremy Thorpe’s reply had been received. From what Ted said, there were clues that his mind was already turning to the idea of a National Government of all parties, something which would increasingly attract him. It did not, of course, attract me at all. In any case, the Liberals were not going to join a coalition Government with us. There was nothing more to say.
I left Downing Street, sad but with some sense of relief. I had given little thought to the future. But I knew in my heart that it was time not just for a change in government but for a change in the Conservative Party.
CHAPTER VIII
Seizing the Moment
THE 9? PER CENT SOLUTION
It is never easy to go from government to opposition. But for several reasons it was particularly problematical for the Conservatives led by Ted Heath. First, of course, we had up until almost the last moment expected to win. Whatever the shortcomings of our Government’s economic strategy, every department had its own policy programme stretching well into the future. This now had to be abandoned for the rigours of Opposition. Secondly, Ted himself desperately wanted to continue as Prime Minister. He had been unceremoniously ejected from 10 Downing Street and for some months had to take refuge in the flat of his old friend and PPS Tim Kitson, having no home of his own — from which years later I drew the resolution that when my time came to depart I would at least have a house to go to. Ted’s passionate desire to return as Prime Minister lay behind much of the talk of coalitions and Governments of National Unity which came to disquiet the Party, though doubtless there was a measure of genuine conviction as well. Indeed, the more that the Tory Party moved away from Ted’s own vision, the more he wanted to see it tamed by coalition. Thirdly, and worst of all perhaps, the poisoned legacy of our U- turns was that we had no firm principles, let alone much of a record, on which to base our arguments. And in Opposition argument is everything.
For my part, I was glad that Ted did not ask me to cover my old department at Education but gave me the Environment portfolio instead. I had learned during our previous period in Opposition in the 1960s that there are difficulties in attacking proposals many of which will have been in some stage of gestation within one’s own department. Moreover, I was convinced from my own soundings in the course of the general election campaign that both rates and housing — particularly the latter — were issues which had contributed to our defeat. The task of devising and presenting sound and popular policies in these areas appealed to me.
There were rumblings about Ted’s own position, though that is what they largely remained. This was partly because most of us expected an early general election to be called in order to give Labour a working majority, and it hardly seemed sensible to change leaders now. But there were other reasons as well. Ted still inspired nervousness, even fear among many of his colleagues. In a sense, even the U-turns contributed to the aura around him. For he had single-handedly and with barely a publicly expressed murmur of dissent reversed Conservative policies and had gone far, with his lieutenants, in reshaping the Conservative Party. Paradoxically too, both those committed to Ted’s approach and those — like Keith and me and many on the backbenches — who thought very differently agreed that the vote-buying policies which the Labour Party was now pursuing would inevitably lead to economic collapse. Just what the political consequences of that would be was uncertain. But there were many Tory wishful thinkers who thought that it might result in the Conservative Party somehow returning to power with a ‘doctor’s mandate’. And Ted had no doubt of his own medical credentials.
He did not, though, make the concessions to his critics in the Party which would have been required. He might have provided effectively against future threats to his position if he had changed his approach in a number of ways. He might have shown at least some willingness to admit and learn from the Government’s mistakes. He might have invited talented backbench critics to join him as Shadow spokesmen and contribute to the rethinking of policy. He might have changed the overall complexion of the Shadow Cabinet to make it more representative of parliamentary opinion.
But he did none of these things. He replaced Tony Barber — who announced that he intended to leave the Commons though he would stay on for the present in the Shadow Cabinet without portfolio — with Robert Carr, who was even more committed to the interventionist approach that had got us into so much trouble. He promoted to the Shadow Cabinet during the year those MPs like Michael Heseltine and Paul Channon who were seen as his acolytes, and were unrepresentative of backbench opinion of the time. Only John Davies and Joe Godber, neither of whom was ideologically distinct, were dropped. Above all, he set his face against any policy rethinking that would imply that his Government’s economic and industrial policy had been seriously flawed. When Keith Joseph was not made Shadow Chancellor, he said he wanted no portfolio but rather to concentrate on research for new policies — something which would prove as dangerous to Ted as it was fruitful for the Party. Otherwise, these were depressing signals of ‘more of the same’ when the electorate had clearly demonstrated a desire for something different. Added to this, the important Steering Committee of Shadow Ministers was formed even more in Ted’s image. I was not at this stage invited to join it, and of its members only Keith and perhaps Geoffrey Howe were likely to oppose Ted’s wishes.
With everyone expecting another election before the end of the year — October being the favoured date — the Tory Party entered on an almost frantic search for attractive policies to be deployed in our next manifesto. These had to meet two criteria: they had to be novel, and they had to cast no doubt on the underlying correctness of the recent Conservative Government’s policies. I added a third complication: as far as my area of responsibility was concerned, the new policies also had to be recognisably Conservative. Meeting all these criteria involved us in some extremely testing acrobatics.
Between the February and October 1974 elections most of my time was taken up with work on housing and the rates. I had an effective housing policy group of MPs working with me. Hugh Rossi, a friend and neighbouring MP, was a great housing expert, with experience of local government. Michael Latham and John Stanley were well versed in the building industry. The brilliant Nigel Lawson, newly elected, always had his own ideas. We also had the help of people from the building societies and construction industry. It was a lively group
