I was too young to vote in the 1979 election by a matter of weeks, which was annoying, although it would have made no difference in my constituency which was solidly Tory (I would have voted Labour). I remember that time fairly vividly.
The first thing to say is I don't think Labour could have won in 1979 in any circumstances. The country was absolutely fed up to the back teeth of rampant inflation and endless strikes. Mrs Thatcher had a mandate to tackle the unions. Unfortunately the pendulum swung far too far and now workers have minimal rights in the UK.
Also, just as the Tories were moving to the right under Thatcher, Labour was moving to the left under Michael Foot, who took over from James Callaghan after the 1979 election. A Trotskyist group called Militant Tendency made a concerted effort to take the party over. Foot was not a member but did nothing to root them out or contain them. That was a large part of the reason Labour became unelectable all through the 1980s. The Labour MP Gerald Kaufman described their 1983 manifesto as 'the longest suicide note in history'. Some of the centrists in the party left and formed the SDP, which eventually merged with the Liberals to form the LibDems.
However, looking at what would have happened if they had won, Wikipedia says The Labour Party manifesto, The Labour way is the better way, was issued on 6 April.[11] Callaghan presented five priorities:
- "We must keep a curb on inflation and prices";
- "We will carry forward the task of putting into practice the new framework to improve industrial relations that we have hammered out with the TUC";
- "We give a high priority to working for a return to full employment";
- "We are deeply concerned to enlarge people's freedom"; and
- "We will use Britain's influence to strengthen world peace and defeat world poverty"
Things that wouldn't have happened in the 1980s under a Labour government:
Council house sell off
Building societies turning into banks
Rent controls abolished
Mortgage regulation abolished (you used to be restricted to borrowing 90 or 95% and that had to be no more than 2.5 times joint income or 3 times one income + second income if there was one) - huge factor in subsequent house inflation
BT and British Gas being sold off
British Rail being broken up and private companies bidding to run routes
Very close relationship with the US under Reagan and George Bush Sr, facilitating the rise of the multinationals
Falklands War (probably)
Section 28, banning 'promotion of homosexuality' in schools
However, the great unknown is what else wouldn't have happened. Thatcher deregulated the City, closed underperforming nationalised industries and withdrew support for much manufacturing in the UK because it was uneconomic. She ruthlessly suppressed trade unions and strikes stopped being a big problem. This hit many communities and social groups very hard and led to deep-seated problems we're still grappling with now. It also transformed the UK economy and made a lot of other people very wealthy.
I'm not well enough informed about politics, economics or business to say more about the benefits and drawbacks of Thatcher's approach. What I can say, though, is that I think the UK economy would not have thrived under the Labour Party of the late 1970s/early 1980s. We would have ended up with a very divided society, as we did under Thatcher, but with different fault lines.
If by some miracle they'd won in 1979 I feel absolutely certain they'd have lost in 1983, if they'd even made it that far.