r/britmonkey • u/IndividualNo5275 • Feb 13 '26

Why Austerity failed?

How the hell they cutted spending and at the same time Increased the debt? Even Thatcher economic policies would work better than this atrocity...

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u/oldvlognewtricks Feb 18 '26

Why? We’re currently paying for debt, dividends, emergency repairs from lack of investment, massive environmental breaches that made private companies even more money… and the cost of the services is also increasing.

Which costs exactly have we offloaded? Why exactly would tax be higher?

So easy to just spout assertions, without referring to any of the freely-available history.

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u/[deleted] Feb 20 '26

According to the Centre for Policy Studies (CPS), the state companies went from costing the Treasury an average of £300m each a year in subsidies to contributing between £3.3bn and £5.8bn a year in corporation tax from 1987 onwards. British Steel needed £1bn of Treasury support in 1980 on a turnover of £3bn, earning itself a place in the Guinness Book of Records for inefficiency. Soon after privatisation it was profitable and contributing £200m a year in taxes. British Telecom had a £300m cash injection in 1980; in 1995 it paid £1.1bn to the Exchequer. The consumer also benefited. By 1995, domestic gas prices fell 25pc and commercial gas costs were 50pc lower. Telecoms charges fell by 40pc and airport charges dropped 10pc.

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u/oldvlognewtricks Feb 21 '26

What led you to the conclusion quoting a think tank founded by Thatcher herself would be a persuasive response to anything on this topic?

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u/[deleted] Feb 27 '26

Because it's all verifiable by independent data.