John Major notes

Major Notes-

Timeline-

1990-elected leader 

1990-recession

1991-gets rid of poll Tax in favour of council tax

1992-wins general Election/use of soapbox 

1992-3 crisis: Black Wednesday, David Mellor scandal, closure of coal mines 

1993-Maastricht debates

1994-Privatises coal industry 

1995-leadership election 

1993-6-BSE crisis (mad cow disease)

1996-privatises railways

1996-arms to Iraq scandal 

1997-Labour victory

As a leader-

• During his leadership bid he spoke of a ‘genuinely classless society’
• His leadership election team consisted of right wing Thatcherites: Norman Lamont, Michael Howard, Peter Lilley and Norman Tebbit
• One nation Tory (bring those in need up so everyone at same level but not commit level) / compassionate
• ‘Back to basics’ speech at party Conference 1993

His Economics

• Dry: wanted Britain to join ERM (exchange rate mechanism) as it was counter-inflationary, not due to Europhilism
• Got rid of Poll Tax and replaces with a new council tax and raising VAT Escapes blame for recession which begins in 1990 – only 4% blame him in a poll in 1992
• Control of inflation accepted as critical for economy – so voters tend to choose who can be trusted with economy when making political choice

• Back to basics speech 1992 won him the election, no scandals and good values
• comes back to haunt him as future repetitive scandals in 1990s

Election victory 1992-

• called at the last possible moment 
• opinion polls placed Labour ahead at beginning but Major was positive and soon Tory cam out on top in opinion polls 
• Major won respect for “soapbox” politics and making impromptu speeches on the street in towns like Luton 
• although people still blamed them for the recession they were still seen as the party best able to get the country out of the mess
• 1992 Labour weakness-voters didn’t feel Labour had reformed enough memories of 1980s too strong

Economics-

Before the 1992 election-

• mid 91-early 92 unemployment rose from 1.6mil to 2.6mil 
• homeowners trapped in negative equity (having to repay mortgage that were higher than the current value of the home)
• as a result many homes repossessed which unlike previous recessions, affected not just L/C but also Tory voters 
• with election imminent Major resorted to high public spending, half of which was forced as a result of rising unemployment but huge gov borrowing was used for subsides on transport and increased spending on the NHS

Black Wednesday and its Impact-

• Few months after election, Britain forced to leave the ERM (Exchange rate Mechanism), became known as black Wednesday and dominated rest of premiership
• UK joined in 1990 under Thatcher who argued it would help combat inflation which had started to rise 
• required UK to maintain fixed rate of exchange around 2.95 German marks to the pound with a narrow band for fluctuations
• September 1992 the British currency, along with several otters ERM currencies came under pressure
• reached a climax on 16th Sept 1992 and Uk forced to leaver ERM, broadcast by Lamont on live TV 
• the effects…