The Final Cut was conceived as a soundtrack album for Pink Floyd – The Wall, the 1982 film based on Pink Floyd's previous studio album The Wall (1979). Under its working title Spare Bricks, it would have featured new music rerecorded for the film, such as "When the Tigers Broke Free". Primary songwriter Roger Waters also planned to record a small amount of new material, expanding The Wall's narrative.
As a result of the Falklands War, Waters changed direction and wrote new material. He saw British Prime Minister Margaret Thatcher's response to Argentina's invasion of the islands as jingoistic and unnecessary, and dedicated the new album—provisionally titled Requiem for a Post-War Dream—to his father, Eric Fletcher Waters. A second lieutenant of the 8th Royal Fusiliers, Eric Waters died during the Second World War at Aprilia in Italy, on 18 February 1944, when Roger was five months old. Waters said:The Final Cut was about how, with the introduction of the Welfare State, we felt we were moving forward into something resembling a liberal country where we would all look after one another ... but I'd seen all that chiselled away, and I'd seen a return to an almost Dickensian society under Margaret Thatcher. I felt then, as now, that the British government should have pursued diplomatic avenues, rather than steaming in the moment that task force arrived in the South Atlantic.
Waters had conflicting feelings about how his generation was tackling issues that greatly affected his father's generation. In an interview in 1987, he confessed: It says something about a sense, I suppose for me personally, a sense that I may have betrayed him. He died in the last war and I kind of feel that I personally may have betrayed him, because we haven't managed to improve things very much. That the economic cycles still over-ride everything, with the best intentions, the cycle of economic recession followed by resurgence still governs our actions. Guitarist David Gilmour disliked Waters' politicising, and the new creative direction prompted arguments. Five other tracks not used on The Wall ("Your Possible Pasts", "One of the Few", "The Final Cut", "The Fletcher Memorial Home", and "The Hero's Return") had been set aside for Spare Bricks, and although Pink Floyd had often reused material, Gilmour felt the songs were not good enough for a new studio album. He wanted to write new material, but Waters remained doubtful as Gilmour had lately contributed little new music. Gilmour said:
I'm certainly guilty at times of being lazy, and moments have arrived when Roger might say, "Well, what have you got?" And I'd be like, "Well, I haven't got anything right now. I need a bit of time to put some ideas on tape." There are elements of all this stuff that, years later, you can look back on and say, "Well, he had a point there." But he wasn't right about wanting to put some duff tracks on The Final Cut. I said to Roger, "If these songs weren't good enough for The Wall, why are they good enough now?"