Privatization revisited

The similarities between now and the early years of the Thatcher government can easily be overplayed. Yes, there are parallels: a public sector grown fat on government profligacy, unions leaders stirring up resentment, and a government unsure about quite how radical it wants to be. But there are clear differences too: the political dynamics, the industrial landscape, and, indeed, the magnitude of the fiscal crisis. Nevertheless, there is at least one successful Thatcher-era policy that is desperately due a comeback: privatisation.

It won’t have escaped many CoffeeHousers’ notice that, despite the tough talk on the deficit, the government is still borrowing almost £20m per hour. The cost of servicing our accumulated debt has rocketed too, and is estimated to be as much as £120m per day. To put it bluntly, the British state is massively overextended and, like any overextended organisation, it ought to start selling off its surplus assets in order to pay down its debt.