Chapter 6 -Thatcher and the end of consensus, 1979-97 

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  • Created on: 12-06-18 11:15
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  • Chapter 6 -Thatcher and the end of consensus, 1979-97 pgs 42-50
    • Why did thatcher win three elections in a row
      • she was popular with a large number of voters
        • some had traditionally supported labour
    • 1983 election
      • unemployment and economic problems reduced the popularity of the government 1981
        • but gained support after victory in Falklands
    • the 1987 election
      • tories won more votes than in 1979 or 1983 there policies were popular key sections of the electorate
      • They were ahead in the opinion polls
      • selling of houses and shares in privatized industries
      • Unemployment was falling and the pound was strong
      • The labour had not recovered
        • they won 1.5 million votes more than in 1983
    • How successful were Thatcher's economic and social policies
      • inflation
        • retail prices doubled between 1973 and 1979
        • she believed economic recovery depended on conquering inflation
        • believed inflation should be tackled by monetarism
      • taxation policies
        • indirect to direct taxation
          • intially made inflation worse
            • howe resorted to the deflationary measures used by previous governments to tackle inflation
      • howe's economic policies and economic problems
        • had a positive impact on inflation but contributed to down turn in the economy
        • prices rose slower in 1983
        • manufacturing output fell - many firms went out of business
        • higher interest rates boosted overseas confidence
        • 1981 riots broke out due to unemplyoemtn social tension and poverty
        • 1982 Britain's economy showed signs of recovery 1982
        • Britain's economy became more competitive
      • privatization
        • thatcher felt it was fundementle in improving Britain's economic performance
        • she maintained nationalised industries that were over-manned and efficient
        • would be better ale to raise investment capital once released from government control
        • It was very popular by 1990 there was 11 million shareholders
      • tax cuts and deregulation
        • Howe's policy of shifting revenue from direct to indirect taxes
        • indirect taxes such as VAT, petrol tax and other duties were increased
        • financial services act 1896 deregulated the London stockmarket
          • this meant that the city of London's market was revitalised
            • but increased London rest of the country divide
      • the economic record of the thatcher governments
    • The Social policies of the thatcher government's
      • The NHS
        • applied business principles
        • hospitals in control of their own budgets
        • gps had own budgets
      • Schools
        • added gcses open to all students
      • Universities
        • wanted universities to be self sufficient
          • they removed polytechnics
          • did not abolish grants for students
          • university funding council created to ensure education reflected needs of the industry
      • Council House sales
        • gave people to own there own homes to make them less socialist
        • property ownership increased by 12%
    • How Successfully did Thatcher deal with industrial relations
      • Thatchers aims
        • wanted to tackle the unions
          • because union power made British firms noncompetitive
          • there would be more jobs when British industry adapted to conditions
      • Thatcher's legislation
        • She learnt lessons from the 1971 industrial relations act and introduced changes consecutively not all at once
        • 1980- secondary picketing outlawed unions encouraged to hold ballots
        • 1982 employment act restricted sympathy strikes and allowed closed shop only if there wa 85% support
        • greater compensation for people sacked for not joining a union
        • 1984 unions required to hold ballots before strike action
        • her policies accelerated the social and economic changes that had been effecting the trade union membership
      • The Miners strike 1984-85
        • NCB - Facing a losss of £250 million for 1983-4 alone
        • government not prepared to support failing industries
        • started due to the closure  of 20 unecnomic pits
      • Why was the miners strike defeated
        • It was't legal
        • people not prepared to support the extremist Arthur scargill
        • Miners weren't united
        • Miners lost support due to violence on the picket lines
        • it was held during the summer - people didn't need coal
      • The impact of the strike
        • some felt she had destroyed livelihoods and communities
        • Others felt she had succesfuly controlled the unions
        • forced miners to realise there industry was unsustainable
    • 1979 election
      • mostly decided in london
      • Previous decades enlarged middle class resentful about strikes
      • Labour maintained seats in Scotland and wales

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