WE ARE ALL THATCHERITES NOW:

The Iron Lady's legacy will not rust easily: What did Margaret Thatcher change about Britain? Everything, and 30 years on our country is still the better for it (Charles Powell, 5/02/09, Times of London)

There have been reversals of the direction that she set, with the partial nationalisation of banks and the increase in the higher rate of tax to 50 per cent. But the former is first aid to a tottering banking system rather than an ideologically motivated return to public ownership. The Government clearly wants out as soon as possible, recognising that it knows even less about banking than bankers, difficult as that is. We will not see Clause 4 exhumed.

The bonus classes largely have themselves to thank for the 50 per cent tax rate. Their excess made them an irresistible target. But the higher rate won't raise significant extra revenue. What it will do is deter effort, so Britain will lose out in tax competition with our market rivals, making it harder to restore the City's leading position in financial markets. The higher rate will have to be rolled back before long by whichever party is in government to avoid jeopardising economic recovery.

I don't see either of these measures - regrettable as they are - as a definitive rejection of Thatcherism. The real story is not that the Thatcher era is over but that it continues unabated. Nineteen years after she left office, no successor government has deliberately undone or reversed any of the main changes she brought about. Nor have they come up with anything better. The “Thatcher settlement” remains largely intact.