Agreed, Labour was failing horribly by that point, seems to be a standard rule that 8 years is about maximum for any Political group to be in power before the facade starts crumbling and the rot sets in. But Thatcher is always made out (by the Conservatives) as one woman on a mission to fight corruption in Government that had formed over years of ineffective Labour Governance, but in truth, she was on a mission to help her rich and influential friends get as much of a leg-up as possible.
Some of the cuts made sense, coal was costing more to mine than to sell, others made none, British Steel was, at the time, considered some of the finest in the world, and she cut the industries head off, because importing lower-quality steel was cheaper, so while the quality of goods dropped, her buddies had more money in their pockets, and the UK lost one of its last Primary Industries. British Rail has just been a catalogue of ****-ups since privatisation, I wouldn't be surprised if the Taxpayer is actually paying more to subsidise the private companies running the Rail system than they used to pay the Government to actually run it, and yet those companies make, and keep massive profits.
Thatcher dealt with behind-the scenes corruption purely by moving it to centre stage and calling it policy.