I woke up this morning and had a brilliant dream. Thatcher did not get elected in 1979. Healey was still chancellor and had used the oil revenues in three different ways. 1/3 he gave to the mining industry and said you have a limited lifespan, but let's keep the communities going for the next 20 years. The money would be invested in safety, retraining and in new uses for mines, ie museums and long term storage. He figured quite cynically that Scargill was getting on a bit and that by 1999 there would be no Scargill and the people he was bribing were currently 38-45.
Callaghan had pointed out the steel business and shipbuilding were also in terminal decline but he accepted the next 1/3 was for investment in the future, primarily infrastructure. Being an energy tax, Healey argued vociferously that the steel based industries should re-invent themselves as part of the new manufacturers. New cleaner power was envisaged in the coming generations and harnessing its power profitably as it moved from the laboratories to the manufacturing plants was key. Ditching loss making activities at the early stage was crucial. Electricity was the new idea. The new national grid would run parallel with the railways and the massive transit systems. The pylons would be gone and the electrification of the railways would provide a grid the envy of the world. The primary resources of water would also be part of the national grid. In the Somerset flats, massive canals would sit either side of the raised railways. With the collapse of other steel business, we had a lot of manufacturing plants going empty. Huge grants were made available for any company transforming itself and their staff to fulfil elements of the national grid. British Steel wasted no time in availing itself of the largesse. The investment was not just for steel. Healey targeted the developing telecoms industry and one of its off shoots, something called the internet. He finished his budget speech to rowdy cheers as he set out plans radically transforming the water industry with his proclamation to create 100,000 new plumbers.
Having visited Scotland during the 1979 bid for devolution he was conscious how dreich it could be so 1/3 he suggested be put away for a rainy day.
During the early 80's he realised that the sale of council houses was a plan the public embraced and took note. He matched the tory policy on discounts and agreed to sell houses to any tenant however with a caveat that if they subsequently sold the house within 10 years the discount would be returned on a 10% sliding scale. All revenues were to be reinvested in new council houses and councils were obliged to ring fence infrastructure revenues which highlighted the tory plan to use the proceeds to reduce central government support of councils. Every council was asked to set aside an area to convert into new accommodation. 80% council housing 20% student housing where appropriate. Where council house sales exceeded certain levels new schools, libraries, recreation centres and hospitals were to be built as part of the infrastructure.
As unemployment fell from the 1million to 650,000 universities were seeing a greater proportion of overseas students who were happily filling the skills shortages, particularly in the new computer related industries.
Tax revenues from those employed rose as the government continued to see employment figures rise.
Then I woke up, a bit snarly having heard we get getting devo max minus the oil revenues clearly belong to London as that's where the spreadsheet is. We can have all the tax raising powers, except on the big things, as we need it for cross rail, HS2, another millenium dome....
back to sleep, it was all looking so rosy...zzzzzzzz
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