Thatcher and the End of Consensus 1979-97
- Created by: TaylorYS
- Created on: 31-05-19 14:54
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- Thatcher 1979-1990
- 1979 Election (43 Seat Majority)
- Decline in the Liberal party
- Blamed for keeping Callaghan's government in office since 1977
- Handed many liberal seats in the Midlands and the South to the Tories
- Labour punished by constituencies in London and the Midlands
- Failure to deal with economy, trade unions, Winter of Discontent
- Electoral System
- Marginal seats were key, Thatcher appealed to these by stressing need for Trade Union reform and attacking socialism
- Decline in the Liberal party
- 1983 Election (144 Seat Majority)
- Falklands Factor (1982)
- Favourable press coverage
- Saw Thatcher as leading a national revival
- Split in the Labour Party
- Foot as leader meant the more moderate element of the party split to form the SDP
- Liberal/SDP alliance
- 'Longest Suicide note in History' Labour manifesto 1981
- Anti-Thatcher vote was split
- Foot as leader meant the more moderate element of the party split to form the SDP
- Privatisation increased public shareholding
- Falklands Factor (1982)
- 1987 Election (102 Seat Majority)
- No more Falklands Factor and no more huge weakness in Labour leadership meant a loss of 21 seats
- Selling council houses and shares appealed to the middle classes and skilled working classes
- Unemployment was falling and the pound was strong
- Split in the left wing vote
- Economic Policies
- Problems identified
- Inflation
- Eroded middle class savings
- Over priced industry
- Fuelled by government spending
- Overall Thatcher managed to decrease inflation
- Lack of investment and modernisation, and economic stagnation
- Lack of incentive to modernise and increase productivity
- She wanted to reduce the amount of money in circulation (Monetarism)
- Inflation
- Taxation Policies
- Shifted from direct to indirect tax
- Direct tax = based on individual's income
- Indirect tax = levied on goods bought
- Initially worsened inflation
- VAT increased price of goods
- In 1980 and 1981, government expenditure and borrowing were cut, and taxes were increased
- 'Most unpopular in history'
- The impact afterwards was positive and negative
- Inflation by 1983 had reduced from 18% to 4.5%
- Falling manufacturing output by 14%
- Unemployment doubled by 1983
- Government didn't support failing businesses
- Increased interest rates
- Value of the pound increased
- Shifted from direct to indirect tax
- Privatisation
- Thatcher believed that nationalised industries were inefficient and over-manned
- Hugely popular with those who bought shares
- Hoped this would reward those with values of hard work that she admired
- Gave more people a stake in the success of the economy
- Hoped this would reward those with values of hard work that she admired
- Undervaluing initially meant shareholders would sell early to big operations for an instant profit
- Improved performance, lowered prices, offered consumers more choice
- Deregulation
- Lawson 1983-89
- Indirect taxes increased
- Lawson's Boom
- Gap between thriving areas and depressed areas was growing
- Financial Services Act 1986 deregulated the stock market, revitalising London's money market (Big Bang)
- Ensured that London remained at the centre of the global financial market
- Lawson 1983-89
- Critics
- North Sea Oil
- Privatisation for big shareholders rather than customers
- 'Get Rich Quick' attitude
- Fall in manufacturing hit unemployment
- Problems identified
- Social Policies
- NHS
- Applied business principles to the NHS
- Hospitals became self governing, in charge of their own budgets
- NHS services would compete to offer efficient and cost effective service
- GPs became fund holders with their own budgets
- Injected financial discipline
- Appeared to prioritise profits over patient care
- Applied business principles to the NHS
- Schools
- Replace O levels and CSEs with GCSEs
- Open to students of all ability
- Regular national ability testing, and a national curriculum
- Some believed the curriculum was too restrictive and testing too frequent
- Some argued they were not rigorous enough
- State schools could become grant-maintained, in control of their own budget
- Replace O levels and CSEs with GCSEs
- Universities
- Universities needed to be more economically self sufficient
- Cut Uni budgets in 1981, forcing them to accept more students, and find alternative sources of income
- University staff lost security of tenure
- Universities needed to be more economically self sufficient
- Council House Sales
- Property Owning Democracy
- Wanted to reward those who shared her values of hard work, self reliance, and initiative
- Owning property gave people a stake in society
- Allowed long term tenants to buy their council houses
- Gave home owners tax relief on their mortgages
- Government money spent on subsidisation increased by 12%
- Property Owning Democracy
- NHS
- Industrial Relations
- Thatcher believed jobs would become available once British industry adjusted to market conditions and Unions lost their power
- Legislation
- Employment Act 1980
- Outlawed secondary picketing, increased rights on non-union employees
- Encouraged ballots for strikes by offering government money
- Employment Act 1982
- Restricted sympathy strikes
- Ballot needed over 85% support
- Compensation for those sacked for not joining a union
- Trade Union Act 1984
- Ballots for industrial action were required
- Except for the year of the miners strike, working days lost to strikes were considerably lower as a result
- High unemployment deterred strike action
- Union numbers were falling anyway, difficult to mobilise strike action
- Employment Act 1980
- Miners Strike 1984-85
- Government preparations
- Whitehall committee stockpiled coal in 1981
- As did the Central Electricity Generating Board
- National Reporting Centre in New Scotland Yard, central control of policing
- Whitehall committee stockpiled coal in 1981
- Why it was defeated
- Miners were not united (breakaway union in December 1984)
- Less demand for coal in the Spring/Summer
- Labour wouldn't support Scargill
- Widespread sympathy was dampened by violence on picket lines
- Government were prepared to use considerable force
- Impact
- Divided support on Thatcher
- She was successful to her supporters as she was firm in her attitude to the unsustainable coal industry
- Held firm against Trade Unions
- Enemies believed she wanted to destroy livelihoods
- She was successful to her supporters as she was firm in her attitude to the unsustainable coal industry
- Divided support on Thatcher
- Government preparations
- Fall of Thatcher
- Growth in Opposition to her Style
- Heseltine
- Resigned in 1986 over the Westland Affair
- Lost a supporter in Whitelaw to a stroke, and fell out with Lawson and Howe over the economy and Europe
- Howe's resignation speech
- Called for a challenge to her power, he had endured bullying and hatred from her
- Triggered her downfall
- Called for a challenge to her power, he had endured bullying and hatred from her
- Heseltine
- Poll Tax
- Flat rate tax on every individual
- Massive anti poll tax demonstration in Trafalgar Square March 1990
- Flat rate tax on every individual
- Economic Difficulties
- Stock Market Crash 1987
- Lawson reduced income tax, causing an increase in inflation
- Lawson then raised interest rates rather than cutting government spending
- Thatcher's most admired people were now paying extortionate amounts
- Lawson then raised interest rates rather than cutting government spending
- Lawson reduced income tax, causing an increase in inflation
- Stock Market Crash 1987
- Divisions over Europe
- Thatcher sceptical of the ERM, regretted accepting the Single European Act 1986
- Personal Isolation
- Labour began to win the opinion polls and some elections
- There began to be challenges to her power within the party (Anthony Meyer)
- Labour began to win the opinion polls and some elections
- Growth in Opposition to her Style
- 1979 Election (43 Seat Majority)
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