It’s time to revisit Margaret Thatcher’s old mantra: “There is no alternative.” This time, though, it calls for a new direction. In Thatcher’s era, this saying supported an economic model that led to unbalanced growth, failing privatized utilities, a rocky housing market, and widespread social unease. Today, it’s painfully clear that clinging to this outdated approach is no longer viable.
In the current climate, we find ourselves facing grim financial choices. This week, Chancellor Rachel Reeves from the Labour party—a party traditionally supporting common citizens—plans to drive deeper cuts into already thin departmental budgets. The government is stripping many pensioners of the winter fuel payment and slashing £5 billion in disability benefits, affecting people who rely on assistance for basic needs. According to the Joseph Rowntree Foundation, by the next election, all households will see a dip in living standards, with the hardest hit being the poorest among us.
It feels almost like a political Groundhog Day. Every morning, the public is greeted with apologies from leaders who promise that the latest round of cuts will eventually lead to prosperity. Yet, despite endless assurances, the narrative doesn’t change. Here’s the harsh reality: if current policies persist, we’ll be hearing these promises indefinitely, regardless of age or lifetime.
This isn’t just a monotonous repetition, as each round of reductions bites deeper into an already dwindling pool of social resources. An aging population is straining the budget further, with the number of Britons over 80 set to more than double in the next 40 years. Additionally, increased defense spending and the financial burden from climate change will sap resources, while clamping down on immigration—despite it funneling billions in tax revenue—involves its own costs.
The 2008 financial crisis marked a significant halt in social progression in the UK. Sure, technological advances like rapid internet and evolving smartphones continued, but people’s real wages haven’t caught up since the crash. The Trades Union Congress highlighted that if wages had maintained their pre-crash growth, the average worker would now be £10,400 richer annually.
The Institute for Fiscal Studies reported that schools’ purchasing power dwindled under the last government, while the National Health Service is in a constant state of emergency, raising alarms about crumbling infrastructure. Life expectancy is stagnant, still falling among the poorest, despite advancing healthcare technology. These days, declining infrastructure and empty high streets contribute to a pervasive sense of national decline.
We really have no choice but to break away from this path of deterioration, simply because it is unsustainable. Western society is rooted in the belief that life should improve for future generations, and losing that optimism releases societal forces that threaten democracy itself. The rise of authoritarianism in the US should concern us—all too real a possibility for Europe and, indeed, the UK.
We’re at a critical point where the focus on asset retention over investment has clearly failed. Our society can’t keep absorbing these blows without consequence. To tackle our economic woes, some Labour members suggest a wealth tax—a controversial notion, maybe, but it’s more than just hot air. Back in 2020, a group of professionals formed the Wealth Tax Commission to explore such an idea deeply. These experts, including those adept at navigating the UK’s tax system, proposed a one-time wealth tax on millionaire couples that could yield £260 billion over five years. Their aim was to learn from other nations’ experiences, accounting for challenges like individuals who are asset-rich but cash-poor—suggesting tax payments be spread over years, especially for private pensions.
Though this proposal needs updating, it stands as a serious, informed piece of work. Dismissing it as impractical overlooks the severe predicament we face. The current economic model, stripping safety from the masses, is unsustainable. Beyond the human toll, it breeds despair, fueling right-wing populism. If slicing public spending ensured prosperity, the UK would be thriving. Instead, it has led us to stagnation. Reject shifts away from these failed practices, and risk the death of democratic faith. We must change direction radically—truly, there is no alternative.
