We can now, with the benefit of hindsight know that the left was right all along: its all in the data,
|Historic UK Structural Deficit|
Labour took over from the conservatives inheriting a very significant structural deficit.
By 1979, growth had actually returned so the structural deficit would be eliminated by the next parliament with or without Mrs Thatchers bizarre reforms; her Victorian medicine.
Despite terrible world economic conditions of the late 70's and surging oil prices which rose to 2005 levels when adjusted for inflation, the Old Labour government never the less was able to tighten up the fiscal policy.
It is common for many tories to talk up the use of the IMF as if it is evidence of national failure. But that according to the data just isn't the case. The labour government inherited a terrible structural deficit and had few options with a world economy reeling from rising oil prices and a financial market failing to offer the UK reasonable bond rates despite the UK's strong record on improving its fiscal stance: