OKay, here's some facts. Welfare and healthcare spending as a percentage of GDP INCREASED under margaret thatcher. Education and Defense spending fell as a percentage of GDP. GDP grew faster under thatcher than before her. Government spending as a whole didn't decline until the later Thatcher years. The unemployment rate was high, but not higher than a countries such as France and Spain, and it began to decline during the later Thatcher years.
Regardless of what Thatcher actually said, there was no real "austerity" under the Thatcher regime. There was no militaristic expansion. Sure, unemployment was high, but you have to remember that around 1980 central banks around the world were tightening monetary policy due to double digit inflation in major countries such as the US and UK.