In retrospect we might have been more cautious about allowing the creation in the 1950s of substantial Muslim communities here, although when one observes the, in some ways, greater problems which France and Germany have in this respect, it is an illusion to believe that in the integrated world of today any major country can remain exclusively indigenous.
There has been a lot of talk about the formation of a new centre party. Some have even been kind enough to suggest that I might lead it. I find this idea profoundly unattractive. I do so for at least four reasons. First, I do not believe that such a grouping would have any coherent philosophical base…A party based on such a rag-bag could stand for nothing positive. It would exploit grievances and fall apart when it sought to remedy them. I believe in exactly the reverse sort of politics…Second, I believe that the most likely effect of such an ill-considered grouping would be to destroy the prospect of an effective alternative government to the Conservatives…Some genuinely want a new, powerful anti-Conservative force. They would be wise to reflect that it is much easier to will this than to bring it about. The most likely result would be chaos on the left and several decades of Conservative hegemony almost as dismal and damaging as in the twenties and thirties. Third, I do not share the desire, at the root of much such thinking, to push what may roughly be called the leftward half of the Labour Party…out of the mainstream of British politics…Fourth, and more personally, I cannot be indifferent to the political traditions in which I was brought up and in which I have lived my political life. Politics are not to me a religion, but the Labour Party is and always had been an instinctive part of my life.
Undoubtedly, looking back, we nearly all allowed ourselves, for decades, to be frozen into rates of personal taxation which were ludicrously high… That frozen framework has been decisively cracked, not only by the prescripts of Chancellors but in the expectations of the people. It is one of the things for which the Government deserve credit… However, even beneficial revolutions have a strong tendency to breed their own excesses. There is now a real danger of the conventional wisdom about taxation, public expenditure and the duty of the state in relation to the distribution of rewards, swinging much too far in the opposite direction… I put in a strong reservation against the view, gaining ground a little dangerously I think, that the supreme duty of statesmanship is to reduce taxation. There is certainly no virtue in taxation for its own sake… We have been building up, not dissipating, overseas assets. The question is whether, while so doing, we have been neglecting our investment at home and particularly that in the public services. There is no doubt, in my mind at any rate, about the ability of a low taxation market-oriented economy to produce consumer goods, even if an awful lot of them are imported, far better than any planned economy that ever was or probably ever can be invented. However, I am not convinced that such a society and economy, particularly if it is not infused with the civic optimism which was in many ways the true epitome of Victorian values, is equally good at protecting the environment or safeguarding health, schools, universities or Britain's scientific future. And if we are asked which is under greater threat in Britain today—the supply of consumer goods or the nexus of civilised public services—it would be difficult not to answer that it was the latter.