Was Thatcher's Premiership good? 1979-90
- Created by: hastr010
- Created on: 15-05-18 22:15
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- Was Thatcher's premiership good?
- taxation policies
- 1979 - tax burden significantly shifted from direct to indirect tax but the initial measures worsened
- VAT pushed up the price of goods
- Howe resorted to previous deflationary measures; cutting gov. expenditure. reduced government borrowing and increased taxation.
- Because of Howe: the rate at which prices rose decreased by about 15%.
- Manufacturing output fell and many firms went out of business
- unemployment doubled between 1979 and 1983 - reached 3 million
- Government did not act to save businesses
- High interest rates made it difficult for anyone to repay loans
- Value of the pound increased
- Helped reduce inflation but...
- riots broke out in Brixton and all over London where there was high unemployment
- Increase of oil exports helped increase the value of the pound and made Britain more competitive
- 1979 - tax burden significantly shifted from direct to indirect tax but the initial measures worsened
- Privatisation
- Thatcher believed that nationalised companies were inefficient and over-manned
- would be more profitable out of government control
- believed selling off the companies would raise investments for other policies
- Thatcher believed that nationalised companies were inefficient and over-manned
- Tax cuts and deregulation
- abolished regulations of London's financial markets created a 'big bang' effect and increased the amount of trade expected
- direct tax decreased, indirect tax increased
- gap increased between lower and upper class
- brought down inflation
- privatisation lowered prices and increased performance of large companies
- deregulation ensured a thriving city
- much of the success came from the North Sea oil wells rather than her economic policies.
- social cost of policies was huge and unemployment more than doubled
- small businesses went bust
- Social policies
- NHS made more efficient by applying business principles
- self-governing hospitals - in control of their own budgets
- expected to compete with other health care services to provide GPs with the best service
- GPs became fund-holders with their own budgets to manage
- expected to compete with other health care services to provide GPs with the best service
- made NHS more disciplined but more focused on profit rather than patients
- self-governing hospitals - in control of their own budgets
- GCSE's introduced into schools
- all pupils could be marked by the same exam type
- some argued it would lower the grade average of the country
- Thatcher believed universities should be more self-sufficient
- Cut university spending, forcing them to take more students
- removed polytechnics from the options
- Council house sales
- made long term council house tenants able to buy their home
- lower classes still couldn't afford to buy it
- property ownership increased by 12%
- NHS made more efficient by applying business principles
- taxation policies
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