1979 - 1990 Flashcards

1
Q

What did Thatcher believe was the key reason for Britain’s economic suffering through the 1970s?

A

Consensus politics

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2
Q

What general elections did Thatcher win?

A

won 3 general elections in 1979, 1983 and 1987

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3
Q

What was Thatcher’s class status?

A

She was firmly middle class - being the daughter of the grocer Alf Roberts and also a councilor

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4
Q

What was Thatcher’s political career / Journey?

A
  • Born in Grantham in 1925
  • Studied Chemistry at Oxford where she was active in student politics
  • She became a lawyer
  • upon entering the political scene in 1950, she was treated as an outsider and was often dismissed by tory grandees due to her not having a traditional conservative background
  • was elected head of the conservatives in 1975 after being in heath’s cabinet and removing free milk from primary schools, following 2 successive election defeats from heath.
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5
Q

What type of politician was she and what example proves this?

A

She was a conviction politician,
This could be seen clearly when during the peak of discontent in 1980, she said ‘You cant turn if you want to, the Lady’s not for turning’ at a conservative party confrence, cementing her as a conviction politician as well as acting as a minor jab towards heath after his 1972 U turn

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6
Q

What is a conviction politician?

A

a Politician who follows policies based on their beliefs, rather than if they were popular policies or ones that had occurred before.

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7
Q

What was Thatcherism based on / inspired by?

A
  • Based on some traditional conservative thinking by Tories like Enoch Powell
  • Thatcher’s own personal outlooks and beliefs
  • heavily influenced by a number of ‘New right’ think tanks and academics
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8
Q

What was the new right?

A

Collective name for a group of academic and theoretical organizations that challenged the ideas of Keynesian orthodoxy, drawing at the works of Milton Friedman and Fredrich von Hayek who both were economists at the Chicago institute for economics.

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9
Q

What did Thatcher support instead of Orthodox Keynesian economics?

A

They rejected Keynesian economics in favor for free market monetarist policies.

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10
Q

Why did Thatcherites believe against Keynesianism?

A
  • They linked it to the moral decline of Britain due to consensus politics
  • They thought the free market was moral because it encouraged individuals to be responsible for their actions
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11
Q

What quote by Norman Tebbit summarizes the beliefs of Thatcherites regarding consensus politics?

A

The ‘post war funk’ ‘gave birth to the permissive society which in turn generated today’s violent society’

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12
Q

What did Thatcherites beliefs about law and order lead to?

A

Thatcherites put a great deal of emphasis on law and order, seeing family as a projection of this,

As a result, Thatcherites were supportive of the police and and tough on law and orders and by the mid 1980s it had lead to accusations of the police becoming politicized

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13
Q

Why is it hard to call Thatcherism an ideology?

A

Because it is so intrinsically linked to Margaret Thatcher’s personality.

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14
Q

What is Monetarism?

A

An economic theory which argues the best way to control inflation is by the restraint of government spending and borrowing as well as by limiting the money supply ( the amount of currency in circulation )

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15
Q

What were the key problems Thatcher inherited?

A
  • Winter of Discontent and its domination of the media
  • Scottish devolution
  • increased inflation
  • Government spending issues
  • rising unemployment
  • difficulties with trade unions and strikes
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16
Q

What were Thatcher’s aims summarized by a quote of hers?

A

She wanted to ‘ turn back the decline of Britain’ and ‘demoralize the country’’

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17
Q

What were Thatcher’s five main beliefs?

A
  • The state was too big
  • The trade unions were too powerful
  • Britain was facing moral decay
  • Britain was hooked on borrowing
  • People should focus on self reliance and self improvement
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18
Q

What (4) key things did thatcher do because of her beliefs?

A
  • Tax cuts of the top rate from 83p to 40p and basic rate cut from 33% to 25%
  • Privatization of industry
  • Cuts in public spending
  • Reforms in trade union laws (7 new laws)
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19
Q

What happened to Britain’s industrial output in the first two years of Thatcher’s leadership?

A

Industrial output fell 25% from 1979 to 1981

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20
Q

Summarise the 1987 general election?

A
  • Conservative majority of 144 seats (up from 143 seats) despite a lower voter share than 1979 election
  • LAB lose 60 seats and 3 mil votes
  • LIB+SDP gain 3 million votes and hold 25.4% of the voter share
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21
Q

What is some evidence that suggests the falklands war was crucial in reducing the popularity of the LIB SDP alliance?

A

Before the war, the Alliance polled at 40%, but by the time of the general election of 1983, they received only 25.4%

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22
Q

Why did labour lose 3 million votes and 60 seats?

A

The leader of the party Michael Foot moved the party to the far left with unpopulous and divisive policies, His 1983 election manifesto was dubbed the longest suicide note in history.

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23
Q

What is the ‘Falklands Factor’?

A

The idea that Thatcher’s commanding demeanor and conduct during the Falklands war added to her reputation and boosted her popularity.

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24
Q

What did Britain believe regarding the sovereignty of the Falklands?

A

That the islands had legally been a British dependency since 1833

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25
Q

What did the Islanders believ?

A

98% of the 2000 islanders wished to remain British, a figure that Thatcher used to justify her invasion and gain support, she stated ‘sovereignty was not negotiable’

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26
Q

Who were the leaders of Britain and Argentina?

A

Margaret Thatcher and the Argentine dictator was General Galtieri

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27
Q

What event marked the start of the conflict?

A

Following the HMS endurance move out of the South Atlantic, on the 2nd of April 1982, Galtieri launched 4,000 troops to the islands which quickly overwhelmed the 80 royal marines stationed there.

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28
Q

Why did General Galtieri initiate the conflict?

A

He wanted to make his increasingly unpopular 4-month regime acceptable to the people and believed the UK would not care about the invasion after the HMS Endurance pulled out of the Atlantic

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29
Q

What were the immediate political responses of the UK parties?

A

All parties condemned the invasion, but Labour wanted the UK to act through the UN, whilst Thatcher immediately ordered the retaking of the Falklands.

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30
Q

What event ended any diplomatic efforts to resolve the conflict peacefully?

A

On May 2nd, 1982, a British submarine sunk the Argentine battleship the ‘General Belgrano’ killing 323 people, although this was outside of the 200-mile exclusion zone set up around the Falklands, despite it also sailing away from the battle

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31
Q

What were the reactions to the sinking of the General belgrano?

A

The sun’s headline read ‘GOTCHA’
The event caused much controversy, as it was believed the event happened purposefully in order to avoid a peaceful solution

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32
Q

What other event overshadowed the sinking of the Belgrano?

A

The sinking of the HMS Sheffield 2 days later on May 4th 1982

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33
Q

How did the UK fight the war despite it being 8,000 miles away from home?

A

The UK used American bases on Ascencion islands and received support from the US (unlike Suez) which strengthened the ‘special relationship’

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34
Q

Summarise how the conflict unfolded?

A

By the time British ships arrived, they could make way for ground landings in the 21st may 1982, allowing them to land in San Carlos water (between the east and west islands
The victory was made certain by this point, and Goose Green and later Fort Stanley (capital) was captured on June 14th
The Argentine forces surrendered

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35
Q

How many soldiers died?

A

255 British servicemen
665 Argentine servicemen
3 Falkland Islanders killed by friendly fire

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36
Q

Why did Britain win the ground battles?

A

The elite SAS had been far more effectively which meant they won most ground battles despite being outnumbered.

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37
Q

What were the Military impacts of the Falklands war?

A

Delayed cuts in armed forces spending
A permanent British Garrison was established on the islands

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38
Q

What were the social impacts of the Falklands war?

A

Renewed national pride in Britain and its international position which had been in decline since Suez.

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39
Q

How did Thatcher and the Conservatives benefit from the Falklands war?

A
  • Thatcher was likened to Churchill as a wartime leader thanks to her commanding demeanor and conduct, as well as her decisive actions
  • The war was less than a year before the 1983 election, leading to a surge of popularity and an election win, whilst the opposition had to balance attacking the Government and not insulting the armed forces
  • Michael Foot and Neil Kinnock saw a large dip in their popularity
  • conservative popularity rebounded to where it was (and further) in 1979
  • Labour saw their votes fall by 9% (3 million)
  • Thatcher’s approval rating increased from just 24% in November 1981 to to 59% in June 1982, whilst conservative popularity doubled to 51%.
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40
Q

How did the Falklands war affect voting intentions for the 1983 general election?

A
  • Thatcher’s approval rating increased from just 24% in November 1981 to to 59% in June 1982, whilst conservative popularity doubled to 51%.
  • Before the war, the Alliance polled at 40%, but by the time of the general election of 1983, they received only 25.4%
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41
Q

Who founded the SDP?

A

The SDP was founded by 4 members of the Labour party who broke away in 1981
They were Roy Jenkins, David Owen, Bill Rodgers and Shriley Williams

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42
Q

What 3 main factors caused the SDP split?

A
  • Labour’s 1979 election defeat
  • The election of Michael Foot as leader in 1980
  • Constitutional changes within the Labour party which pushed it to the left.
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43
Q

Who was Michael Foot?

A

He was a far-left Unilateralist who won the 1980 labour leadership contest who won ahead of the more obvious moderate candidate Dennis Healey
Foot had strong Socialist opinions and was never able to connect with ordinary voters, pushing Labour further into the electoral wilderness.

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44
Q

Who was Tony Benn and what part did he play in pushing labour further left?

A

He led the left of the Labour party and interpreted the loss of the 1979 election as a sign that Labour wasn’t far left enough
Benn encouraged the party to follow socialist principles and led a campaign to change the party’s constitution that would require all Labour MPs to seek reselection by their constituencies, which would give left wing activists greater power who had disproportionate influence among ordinary LAB members.

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45
Q

What two events encouraged the breakaway of ‘the four’ to form the SDP?

A

Benn encouraged the party to follow socialist principles and led a campaign to change the party’s constitution that would require all Labour MPs to seek reselection by their constituencies, which would give left wing activists greater power who had disproportionate influence among ordinary LAB members.
At a party conference in 1981, Far left members of the party heckled speakers, convincing moderates that it was time to give up on Labour.

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46
Q

Why was the SDP created?

A

Moderates of the Labour party believe they were in a losing battle against the benninite left, so they built a moderate party that would appeal to voters, founded on center ground principles

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47
Q

How many Labour MP’s broke away to the SDP?

A

‘The Four’ and 28 other Labour MP’s broke away to the new social democratic party

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48
Q

What was a noticeable immediate impact of the SDP’s Creation?

A

Shirley Williams won the conservative safe seat of Crosby in a Nov 1981 by-election

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49
Q

What was the Liberal-SDP alliance?

A

The two center ground parties formed the alliance where candidates from each party would stand down in Favour of the other in order to effectively challenge the two main parties.

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50
Q

What were the consequences for Labour of the SDP Liberal alliance?

A
  • Labour was seen as increasingly unelctable and the alliance had overtaken labour as the credible opposition
  • Foot was unable to deal with divsions within the party and his 1983 election manifesto was dubbed the ‘longest suicide note in history’
  • Labour lost 52 seats at the 1983 election and almost came third place to the alliance in terms of the popular vote. (27.6% to 25.4%)
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51
Q

What social reasons meant Labour was losing support?

A

The party could no longer rely on its traditional working-class support, and press coverage of Labour was almost universally negative following the chaos of discontent.
The unions were no longer a source of power for Labour after they were blamed for the winter of discontent.

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52
Q

Who was Neil Kinnock?

A

Neil Kinnock replaced Foot as the labour leader in 1983 following the election defeat and wanted to lead labour back into the middle ground, while he did not win the 1987 election, he did lots to restore the credibility of the labour party.

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53
Q

How did Kinnock restore the reputation of the Labour party?

A
  • He criticised Scargill for not holding a ballot before the 1984 miners’ strike,
  • he took on the benninites and militant tendency despite being from the left of the party
  • eliminated militant tendency from the Labour party in 1986
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54
Q

What was Militant tendency?

A

A group who had infiltrated the labour party who derived their name from the militant newspaper that promoted Trotskyite revolutionary socialism.

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55
Q

How was the splintering of the opposition crucial in conservative victory in the 1983 election?

A

During the election, the anti-conservative vote totaled 16 million, a whole 3 million more than the conservative vote, yet the Tories still had a 144-seat majority, an example of the distorting effect of the first past the post system. Despite the ‘Falklands factor’ anti conservative sentiment was held in the majority of voters, therefore the splintering of the opposition and divided parties were the key reason in Thatcher’s 1983 election win.

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56
Q

What are the three factors regarding the 1973 election?

A
  • Thatcher’s Character and beliefs
  • The Falklands war
  • The divided opposition (Labour + SDP)
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57
Q

Who were the ‘Wets’?

A

Nickname given to CON MP’s who opposed Thatcher and her Monetarist policies

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58
Q

What was Thatcher’s first cabinet made up of?

A

While there were some wets in her cabinet, she made sure all key economic positions were held by dries

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59
Q

Who is Geoffrey Howe?

A

Thatcher’s Chancellor of the Exchequer from 79-83, he helped apply monetarist principles into the UK economy, also foreign minister from 1983 - 1989.

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60
Q

Who is Nigel Lawson?

A

Geoffrey Howe’s number 2 in the treasury from 79-83, replaced him as chancellor from 1985-1989, was a dry.

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61
Q

What was the exception from Thatcher only appointing ‘dries’ into her cabinet?

A

Jim prior was appointed employment minister from 79-81. He had disagreements with Thatcher over anti-union legislation and Thatcher thought he was too friendly with trade unions, as a result he was demoted to the NI office in 1981, replaced by Norman Tebbit.

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62
Q

What was the biggest threat to Thatcher from within her party?

A

Michael Heseltine who stormed out of a cabinet meeting in 1985 resigning from his position and claiming Thatcher was acting unconstitutional, later called the Westland affair. Heseltine later became the ‘leader’ of conservative MP’s who were against Thatcher.

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63
Q

Which economists founded the principles of monetarism?

A

Frederich Hayek and Milton Friedman, two senior economists at the Chicago school of economists

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64
Q

What is monetarism?

A

A set of economic ideas that argues inflation is the biggest threat to an economy and could be attacked by cuts in public expenditure, though this may cause unemployment the economy will eventually self-regulate
This means monetarists are against state support for struggling industries (Thatcher believed in people working hard for what they earned)

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65
Q

What did Thatcher’s introduction of Monetarism signify?

A

The breaking of the consensus economic policy of Keynesianism that dominated post war economic thinking.

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66
Q

What is secondary picketing?

A

People picketing at locations that directly connect to the issue of protest, this could be component suppliers or businesses that the picketed business relies on or retail stores that sell the picketed products or the private homes of the businesses management
In many jurisdictions secondary picketing does not have the same legal protections as primary picketing.

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67
Q

What is a closed shop?

A

A form of union security agreement, under which the employer agrees to hire union members only and employees must remain members of the union at all times to remain employed.

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68
Q

Who did Thatcher appoint as minister of employment in her first cabinet and how did they approach the situation?

A

James’s prior, the only wet in her cabinet in a major economic position, he was appointed to deal with trade union reform after discontent and approached the situation lightly despite hardened public attitudes

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69
Q

What was the prior employment act of 1980?

A

The Prior employment act of 1980:
- Outlawed secondary picketing
- Required a higher levels of workers agreement for a closed shop

The act found widespread public support

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70
Q

When was Norman Tebbit made Minister for employment?

A

in September 1981 during a cabinet reshuffle, this meant that (being an uncompromising Thatcherite) the scope for additional legislation against trade unions widened.

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71
Q

When was the Tebbit employment act passed?

A

1982

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72
Q

What was included in the Tebbit employment act 1982?

A
  • made it so a ballot was required for strike action
  • narrowed the concept of a legal strike
  • made unions legally liable for any infringements, making it possible to sue trade unions
  • made it harder to sack someone for not being in a union
  • gave employees the right to fire employees who were on strike

This tightened legislation tied down the unions and avoided Heath’s mistake of attempting to do too much at once

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73
Q

What other factor weakened the unions?

A

The rising unemployment brought on by the establishment of monetarism further weakened the unions.

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74
Q

How did the Thatcher Government originally deal with the coal pits?

A

In 1981 the NCB (National coal board) warned the need to close 23 coal pits, the gov did not want a repeat of 73/74, so they reduced the amount of coal imported to increase demand for domestic coal and protected the subsidy to the NCB to avoid an energy crisis., Thatcher also honored existing pay agreements to avoid a showdown with the NUM

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75
Q

What was happening to strike figures up until 1984?

A

There was a continual improvement in strike figures until 1984

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76
Q

What were (all) of the reasons for the miners’ strike in brief?

A
  • Large stocks of coal had been built up meaning there was a lesser risk of a energy crisis like 73/74
  • The NCB chairman Ian McGregor had taken a hard-line stance on the British steel industry (cutting back on excess capacity in the BSC British Steel Corporation) and had been government backing to do the same with the coal industry
  • on Jan 25th 194 there was a ban on trade union membership in the Government Communication Headquarters (GCHQ) with employees being given £1000 in compensation - Thatch said this was in the interest of national security, but it led to mass outcry and protests
  • The prior employment act of 1980 and Tebbit act of 1982 had reduced the power of the unions
  • The extreme left winger Arthur Scargill was now head of the NUM
  • ## In 1984 the NCB announced the need to close 20 pits and Scargill claimed he had seen plans to close over 70 pits
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77
Q

How did Ian Mcregor influence the start of the miners strike?

A

The NCB chairman Ian McGregor had taken a hard-line stance on the British steel industry (cutting back on excess capacity in the BSC British Steel Corporation) and had been government backing to do the same with the coal industry .

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78
Q

What industrial relations event happened on the 25th Jan 1984 and was a precursor to the miners’ strike?

A

on Jan 25th 194 there was a ban on trade union membership in the Government Communication Headquarters (GCHQ) with employees being given £1000 in compensation - Thatch said this was in the interest of national security, but it led to mass outcry and protests
14 workers were sacked for not giving up their union membership

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79
Q

How was Thatcher’s government more prepared for striking miners?

A

The energy minister Peter Walker had been taking steps to ensure that coal supplies were at a high-level during strikes.
The new laws on secondary picketing, legality of striking and number of union members meant the tactics used in previous strikes were less effective
The police now had much better equipment, experience of riot control and better tactics

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80
Q

What were criticisms of the police during the miners’ strikes?

A

Many Thatcher critics believed that the police had become politicised and had been used to defeat miners rather than being impartial protectors of law and order. They often clashed with protesters like at the Battle of Orgreave.

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81
Q

What were thatcher’s views on failing businesses/industries?

A

She wanted the nation to know that government subsidies came directly out of the public’s pocket. For her it made no sense to use the resources of successful businesses to bail out failing ones - It would reward the inefficient at the expense of the efficient.

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82
Q

Why was there a need for Pit closures?

A
  • Coal was becoming increasingly expensive and harder to exploit and nationalisation in 1948 had done nothing to prevent this, with people criticising the government for not doing enough to help the coal industry.
  • The British Coal industry had been in recurring crisis throughout the 20th century
  • Britain had been importing coal from abroad for some time
  • With the exception of a few mines producing a certain special type of coal, British mines were running at a profit loss
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83
Q

What was the government’s case in Favour for pit closures?

A

Thatcher’s government was unwilling to invest public money into an industry that had little chance of recovery in such a competitive market
She argued investing in the mines was just delaying the inevitable and it was better to face the situation now and avoid large redundancies and redundancy fees

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84
Q

What was the miner’s case against closures of pits?

A

The miners and other analysts argued that with proper investment behind them and a genuine government commitment with coal as a power source large parts of the industry would be profitable
People also pointed out it was also a social issue, and that the consequences would be catastrophic, areas like south Wales, Durham and Yorkshire mining was a way of life and a pit closure could cause a community to crumble.

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85
Q

What event in April 1984 kickstarted the miners strike?

A

Scargill called a strike over pit closures and miners went on strike all over the country, crucially he didn’t hold a strike ballot and relied on each area of the NUM to make it effective.

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86
Q

What did Scargill’s refusal to hold a strike ballot show and lead to?

A

It showed a lack of confidence and proved damaging as the Nottinghamshire miners continued working after Nottinghamshire constituencies voted conservatives in 1983

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87
Q

How successful was picketing in the 1984/5 miners’ strike?

A

Picketing proved to have limited effect on the flow of coal (after the outlawing of secondary picketing) and led to violent clashes with the police.

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88
Q

Who led the strategy on the miners strike?

A

peter walker (energy sec) and Margaret thatcher dealt with the strategy while McGregor had little say in the matter.

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89
Q

How did the police contribute to the continuous flow of coal?

A

They were very successful in allowing non striking workers to work

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90
Q

How did Scargill himself contribute to the failure of the miners strike?

A

Scargill’s radicalism alienated moderates and he never gained support of the Labour party; therefore, the thatcher government could reduce public sympathy for the miners by demonising Scargill as a dangerous revolutionary challenging the democratically elected government

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91
Q

How did the miners strike fizzle out?

A

The miners started steadily drifting back to work while those set on striking relied on charitable donations to keep them going, and Tebbit put even harsher restrictions on the strikers.

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92
Q

How successful was Scargill’s miner strikes?

A

A complete failure.

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93
Q

How did Coal employment figures change during thatcher’s time as PM?

A

1979 = 200,000 employed in the coal industry
1990 = 60,000 and still falling were employed in the coal industry

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94
Q

What were the impacts of the miner’s strikes failure?

A
  • Union membership fell by a third from 1979-1990
  • Coal workers fell from 200,000 to 60,000 from 1979-1990
  • Other state industries like British airways and British steel were reorganised with massive job losses
  • The abillity of the trade unions to intimidate the government had diminished and Thatcher quickly contrasted her success with Heath’s defeat in 73/74
  • The NUM quickly lost 50% of its membership
  • Many saw the miner’s defeat as the defining moment of Thatcher’s career
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95
Q

How did the failure of the miners affect other industry?

A

The loss of the print workers unions

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96
Q

How was the printer unions affected by the loss of trade union power?

A
  • In 1986, print workers tried to prevent Rupert Murdoch from introducing new practices and technology into the Times Newspaper group that would have put their jobs at risk.
    Murdoch used the new laws to break the power of the trade unions
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97
Q

What piece of evidence prove Thatcher achieved her industrial relations goal?

A

With the arguably two most powerful unions (the miners and the printers) dealt with, she had achieved her industrial goals.

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98
Q

What was the biggest clash of miners and police and when?

A

The battle of Orgreave that occurred in June 1984

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99
Q

What happened at the battle of Orgreave?

A

Strikers attempted to prevent coke filled lorries from leaving the Orgreave coking works, here 6,000 picketers struggled for hours against 7,000 policemen before being overcome
93 were arrested, 51 strikers and 72 policemen injured.

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100
Q

What was support for the miner’s vs against the miners?

A

Media polls suggested that 65% of people supported the government and police while 35% supported the miners
The divide was mostly between mining regions in the north and the south of the country.

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101
Q

What was the state of the economy in 1980?

A
  • The economy had plunged into recession
  • Inflation was at 15% (Forcing Howe to raise interest from 12% to 19% by Dec 1979)
  • Unemployment was above 2 million
102
Q

What prevented a serious balance of payments crisis in Thatcher’s first term?

A

The flow of North Sea Oil

103
Q

What was done in the Govs 1981 budget?

A

Despite many assuming the government would back away from their failing monetarist policies, they doubled down,
- Gov borrowing went down massively
- Grants to local councils were cut and benefits frozen

104
Q

What has Thatcher’s 1981 budget been described as?

A

Senior economic advisor ‘biggest fiscal squeeze of peacetime’
Howe: ‘ Most unpopular budget in history’ in his memoirs

105
Q

What parts of the post war economic consensus did Thatcher disagree with?

A

The emphasis on:
- Full employment
- Nationalisation
- Stop go
- Trade union conciliation

106
Q

Who were Thatchers chancellors?

A
  • Geoffrey Howe May 1979 -> June 1983
  • Nigel Lawson June 1983 -> Oct 1989
  • John Major Oct 1989 -> Nov 1990
107
Q

What was Thatcher’s overall economic aim?

A

To reduce government spending and borrowing and control the money supply to reduce inflation, ultimately leading to economic growth

108
Q

How was Thatcher’s belief that people spent money better than governments achieved?

A

She lowered direct taxation, aiming to give people more spending power to foster economic growth and incentivise wealth creation

109
Q

What did Thatcher’s emphasis on supply side economics mean for the economy?

A

deregulating businesses and industries to encourage entrepreneurship as well as lower taxes. This would encourage more competition and profit making leading to business expansion and investment.

110
Q

How did Thatcher achieve a ‘property owning democracy’?

A

She enabled people to buy their own council houses - the ‘right to buy’ enabled in the housing act of 1980 - it was one of her flagship policies

111
Q

How successful were Thatcher’s attempts of creating a ‘property owning democracy’?

A
  • House ownership rose by 15% from 1981-1990
  • 68% of the population owned their house by 1990
112
Q

What happened to the number of people who were Shareholders during Thatcher’s time as PM?

A

Increased 3x from 3 million to 9 million thanks to the privitisation of state industries and the campaigns encouraging investing

113
Q

What happened to the Manufacturing productivity rate under Thatcher?

A

Despite her policies it grew an average of 4.2% a year, the fastest it had done so in British History

114
Q

What happened to taxes under Thatcher?

A

her belief people spent money more effectively than governments meant:
- Top rate of income tac fell from 80% to 40% by 1988
- Standard rate fell from 33%-22%

However indirect taxes increased:
- VAT went up from 8%-15% to make up for the cuts
- Taxes on alcohol, cigarettes and petrol went up in every single budget from 79-87

115
Q

What were the arguments for awnd against Thatcher’s tax changes?

A

For: Lower direct taxes would incentivise wealth creation by allowing people to keep more of what they earned

Against: Transferring the burden to indirect taxes was unfair as it was a regressive tax on the poor which meant it hit them harder

116
Q

What did lower public spending lead to with councils?

A

Led to clashes between CON central government and LAB controlled councils.

117
Q

What were the clashes between the LAB councils and CON government like?

A

The CONs viewed LAB council as their enemy due to ideology and ‘unnecessary spending’

118
Q

What is an example of a clash between LAB council and CON government?

A

The LAB GLC (Greater London Council) was ran by the left winger activist ken Livingstone and many of his transport and education policies were seen as provocations and Thatcher Demonised him as the face of the ‘Loony left’ which harmed LAB credibillity

119
Q

What did the CON gov do to control the overspending by LAB council?

A

Introduced rate capping, whereby the local taxation charged by local councils on all privately owned homes and businesses was capped, reducing the amount of money local councils could raise in taxation.

120
Q

How did LAB councils respond to rate capping?

A

It caused many councils like Liverpool and Sheffield to rebel and not set a budget in 1985 but threatened by bankruptcy they had to back down.

121
Q

What did thatcher do other than rate capping to reduce the power of the councils?

A

In 1986, the local government act abolished the big metropolitan local authorities that had been set up by heath, causing the power of the central government to be boosted at the expense of the local government.

122
Q

What suggests Thatcher’s attempt to reducing public/government spending was not successful?

A

Despite the rhetoric on controlling public spending, she never managed to cut it in real terms, partly because spending on social security massively increased due to the much higher levels of local government

123
Q

How did Thatcher’s economic policy change throughout the 1980’s?

A

As the 80’s progressed, Monetarism was starting to be abandoned in Favour of supply-side economics this was a shift in emphasis rather than policy

124
Q

What did Supply-side economics argue?

A

It argued for a return in incentives, rather than artificially created demand, people would work more if they were incentivized to do so.

125
Q

What methods are used in supply side economics to incentivise working harder?

A
  • Reducing taxation so people keep more of the money they earn
  • Encouraging competition to create lower prices
  • Limiting powers of trade unions so they could not block modernisation or limit productivity
  • Cutting wasteful welfare payments to save public money and reduce dependency
126
Q

What is deregulation?

A

Limiting government intervention and removing ‘red tape’ to make it easier for businesses to trade and grow - incentivising entrepreneuership and wealth creation

127
Q

What schemes were introduced to encourage startup companies?

A
  • The loan guarantee scheme made it easier for small companies to borrow money
  • The enterprise allowance scheme encouraged the unemployed to start their own business by giving them £40 a week for a year to get their start up running
128
Q

What did deregulation in the financial sector lead to?

A

The ‘big bang’ of October 27th, 1986

129
Q

What caused the ‘big bang’ in the financial sector?

A

Financial deregulation allowed foreign banks to act as stock brokers, which opened the way for computer screen trading and replacing the ‘old boys’ network with free competition

130
Q

How did financial deregulation change the UK financial sector ?

A
  • It restored London’s position as a global financial centre
  • A new breed of dealers and speculators took rise, creating the iconic ‘yuppie’
  • London was seen as a place where fortunes could be made
  • The Square mile could compete with Wall Street
  • Financial services became the UK’s biggest export
131
Q

In what ways was Thatcher’s economic realignment/policies not successful?

A
  • The economy under Thatcher grew by an average of 2.2% a year during the 80s which was only slightly more than the 70s
  • Productivity did not increase by much
  • Faster growth in the second half of the decade was balanced by an underperforming second half
132
Q

What 3 other industries were deregulated?

A
  • Transport
  • Education
  • Health
133
Q

How was Transport deregulated?

A

Bus companies deregulated to encourage competition

134
Q

How was education deregulated?

A

Schools entitled to opt out of the state sector and become responsible for their own financing

135
Q

How was health deregulated?

A

Hospitals required to operate in an internal market and match their finance with needs and resources.

136
Q

What event caused privatization to drive much faster?

A

The privatization of BT in 1984.

137
Q

What occurred during the Privitisation of British Gas ?

A

The sale of British Gas was the biggest share offer in History and was accompanied by a £32 million marketing campaign to encourage ordinary people to buy shares

138
Q

What happened to the number of people who owned shares during 1979-1990?

A

It trebled from 3 million to 9 million

139
Q

What type of ideology was privitisation?

A

It was an anti-scoialist ideology as it was a core belief that the private sector was more efficient than the public sector, as that would encourage inflation

140
Q

What did Privitisation also make more prevalent?

A

Outsourcing contracts to the private sector that would normally be done by state became more widespread.

141
Q

What were the other economic positives of Privitisation?

A

Privitisation brought in more revenue for the government as they were sold off cheaply to ensure all stocks were sold

142
Q

What were the other economic negatives of Privitisation?

A

As privitisation occurred, many lost jobs with cutbacks in staff and many found they could no longer find job security and reliable pension provisions

143
Q

What did privitisation signal?

A

The end of the post war economic management consensus

144
Q

What happened to Publicly owned companies by the end of 1990?

A

By the end of the 90s state owned businesses:

  • Employed half as many people
  • contributed half as much to the economy
145
Q

What was an evaluation factor for the number of people who owned shares?

A

The total number of shares held by individuals as opposed to large shareholding institutions fell by a third

146
Q

What happened with interest rates during Thatchers premiership?

A

They rose considerably in order to try control inlfation, reaching 17% in 1979

147
Q

What did the higher interest rates throughout the 80s mean?

A

It meant it was harder for businesses to borrow and increased the value of the pound making it harder for them to export, after creating a decline in output and demand, the economy went into recession creating high unemployment as businesses went bankrupt.

148
Q

What was the rate of inflation throughout Thatcher’s time in power?

A

Inflation started high, peaking at 22% in may 1980, and then slowly dipping to a low of 2.5% in 1986, here it slowly rose again creating another recession.

149
Q

What did higher inflation in the second half of the 80s lead to?

A

it forced the UK to joim the ERM (European Exhange rate mechanism)

150
Q

Evaluation point for the high levels of inflation?

A

The rate of inflation was already in the teens when Thatcher came into power and inflation is only affected by policies that came years before

151
Q

What did Thatcher’s beliefs on unemployement mean?

A

As inflation was the primary aim, Unemployement rises would have to be accepted as the industries became more effective

152
Q

Which areas were the hit worst by unemployment?

A
  • The north and midlands
  • Central Scotland
  • South Wales
153
Q

What statistic shows how terrible unemployment got?

A

The best year for unemployment in the 1980s was higher than the worst year of unemployment in the70s

154
Q

What is evidence for the deindustrialisation of Britian?

A
  • Manufacturing fell by 15% from 1979-1981
  • West midlands production fell by 25%
  • Steel production was cut by 30% to less than 40 million tons
  • Number of people employed in manufacturing fell from 7.1 million to 5 million from 1979-1990
155
Q

How many people were unemployed during the Thatcher years?

A

Reached a high of 3 million by 1983 (13.5%) the highest in the post war period
Unemployment never fell below 3 million until 1987

156
Q

Which area saw the highest unemployment?

A

In Liverpool, unemployment reached 25% and remained high throughout the 80s

157
Q

What was structural unemployment?

A

The shift away from manufacturing to services meant that many workers did not have the skills to find a new job and they became structurally unemployed - meaning that men were hit worse than women during this time of economic change

158
Q

Why was unemployment not a major issue for the conservatives during elections?

A

Despite Michael Foot’s complaints of the obscenity of ‘mass unemployment’ the worst hit areas were Labour seats; therefore, it may have pushed up the anti-conservative vote in some areas, but it didn’t lead to any extra seats being won.

159
Q

What nonpolitical factors caused Britain’s economy to realign?

A
  • Cheaper foreign labour
  • Technological advancements
160
Q

What happened to people/communities that lived in areas reliant on heavy industries?

A

The foundations of the working class there crumbled, and the communities slowly crumbled

161
Q

What did the shift away from heavy industry lead to?

A

A sharpening North South divide as the industries in the North shut down

161
Q

What did the shift away from heavy industry lead to?

A

A sharpening North South divide as the industries in the North contracted, leaving traces of dereliction in the midlands, NE, NW and Scotland. Meanwhile economic trends were shifting economic activity to London and the South

162
Q

What did Geoffery Howe suggest to do about the N/S divide?

A

He suggested that they leave some cities in the north like Liverpool to ‘managed decline’

163
Q

What were the social impacts of economic realignment?

A

Rising levels of depression, suicide and alcoholism riots

164
Q

What did the Scarman report find?

A

The underlying causes of the riots of April-July 1981 were poverty and race

165
Q

Where did riots happen?

A

In deprived inner-city areas where there was high unemployment and high BAME populations like Brixton and Handsworth Birmingham

166
Q

What was the ‘Sus’ Law?

A

A law which gave officers the authority to search someone if they suspected they might commit a crime. Many ethnic minorities believed this unfairly discriminated them, and the law was repealed within a year.

167
Q

What areas of the country did economic realignment benefit?

A

It did lead to some progress in some parts of the UK, with Michael Heseltine spearheading redevelopments in London and Liverpool docks - with the old east India docks turning into the second most financial district in the country (Canary Wharf) and became a symbol of the shift to the services industry.

168
Q

What did Labour establish in 1976 to do with North Sea oil?

A

They had established the British North Sea oil corporation, which ensured oil remained under public control.

169
Q

What did Thatcher change with North Sea Oil?

A

She sold off the majority of the British north sea oil corporation, justifying this act of privatisation by stating despite the benefits it brought, the price of oil had been steadily declining.

170
Q

Why were people upset with the privatisation of the north sea oil?

A

Critics argued the long term benfits of an oil supply had been squandered for a short term boost in revenue - it was an irresponsibillity that threatened the stabillity of the British Economy.

171
Q

Why were people upset with the privatisation of the north sea oil?

A

Critics argued the long term benefits of an oil supply had been squandered for a short term boost in revenue - it was an irresponsibility that threatened the stability of the British Economy.

172
Q

Why were people upset with the privatisation of the north sea oil?

A

Critics argued the long term benfits of an oil supply had been squandered for a short term boost in revenue - it was an irresponsibillity that threatened the stabillity of the British Economy.

173
Q

What is an argument regarding the unemployment levels and the short term income from privatisation?

A

Arguably, it was the short term income from privatisation which funded the unemployment benefits that the recession of the 1980s necessitated - rather than genuine economic growth.

174
Q

What was Westland?

A

Westland was a failing British helicopter company that the defence secretary proposed to save by making it apart of the European consortium that included British Aerospace.

175
Q

What was the conflict regarding Westland?

A

The Industry sec Leon Brittan proposed an alternative option of selling it to a Us Company called Sikorsky. Heseltine wanted it to go to the European consortium and believed Thatcher blocked discussion about the decision in the cabinet and would not let concerns of a US takeover go public.

176
Q

What did Heseltine do after the Westland cabinet meeting?

A

Stormed out and announced his resignation Stating Thatcher was behaving undemocratically - It was the closest Thatcher believed she was to resigning during her memoirs

177
Q

What did Leon Brittan do as a result of the Westland affair?

A

Resigned 2 weeks later after finding out people from within his department had pressured British Aerospace to leave the European Consortium.

178
Q

What were the Key NI events of Thatcher?

A
  • 1984 Brighton bombings
  • 1981 Death of Bobby Sands
  • 1985 Anglo-Irish agreement
  • Measures to bring in stability (Central community relations act, Fair employment act and the NI community relations council)
179
Q

When was the Brighton bombings?

A

12th October 1984

180
Q

Describe the events of the Brighton bombing?

A

During an assassination attempt on Thatcher by the IRA, a bomb had been hidden in a bathroom 3 weeks prior, and went off in the early hours of the 13th October.

181
Q

How many people died in the brighton bombings?

A

5 people died and Norman Tebbits wife was permanently disabled.

182
Q

What were the impacts of the Brighton Bombing?

A

Thatcher’s personal bravery (deciding to begin the next session of the conference exactly on time in defiance) raised her prestige

183
Q

Who was Bobby Sands?

A

Bobby Sands was imprisoned in 1976 and serving a 14 year sentence for attempting to blow up a furniture store.

184
Q

What did Bobby Sands was?

A

Used Hunger strikes to protest his ‘prisoner’ status and believed he should be treated as a political prisoner.

185
Q

What happened when Bobby Sands was on hunger strike in prison?

A

in 1981 while serving his sentence he was elected a Sinn Fein MP, dying a few weeks later from starvation

186
Q

How did Thatcher view the Bobby Sands situation?

A

Her view remained that she should not give into terrorism, and viewed it as a failure as the IRA had not achieved what they were campaigning for.

187
Q

What were the impacts of the Bobby Sands hunger Strikes?

A
  • Unionists and Republicanists harderned their stance
  • The IRA gained publicity
  • The new Sinn Fein president Gerry Adams started to focus on a new political approach following election successes in Fermanagh and South Tyrone -> The tactics they used were now both political and violent.
  • Sands was seen as a hero whilst Thatcher’s refusual to give in made her a hate figure for Republicans
188
Q

When was the Anglo-Irish agreement signed?

A

15th of November 1985 at hillsborough

189
Q

Who signed the Anglo-Irish agreement?

A

Thatcher and the Irish PM Garrett Fitzgerald -> it was also supported by the alliance

189
Q

Who signed the Anglo-Irish agreement?

A

Thatcher and the Irish PM Garrett Fitzgerald -> it was also supported by the alliance

190
Q

What did the Anglo-Irish agreement agree?

A
  • Set up a permanent intergovernmental conference between the UK NI minister and the Irish Foreign minister
  • Gave the Irish Government an advisory role in NI
  • The first time Britain agreed they would allow a united Ireland if it was voted in Favour
  • Attempted to make a devolved government possible
191
Q

What was the main positive of the Anglo-Irish agreement?

A

Paved the way for the good friday agreement

192
Q

What were the criticisms of the Anglo-Irish agreement?

A
  • Republicans disliked it as it confirmed NI was a part of the UK
  • The involvement of Ireland caused a unionist and loyalist backlash -> there was a protest of 200,000in Belfast where Iain Paisley accused terrorists coming in from Ireland.
  • A new unionist parliamentary organization - Ulster Resistance - was set up in retaliation.
193
Q

What was the 1987 centeral community act?

A

Developed understanding between catholics and protestants

194
Q

What was the 1989 fair employment act?

A

Required employers with more than 25 employees not to discriminate when allocating jobs and promotions

195
Q

What was the 1990 NI community relations council?

A

Extended the support and resources granted 3 years earlier to the CCRU

196
Q

What were Thatcher’s indirect societal successes?

A
  • The right to buy scheme, house ownership rose by 15%, 68% owned their house by 1990
  • The housing act of 1980 allowed tenants to but their house at 33-50% off. by 1998 2 million had benefitted of this scheme.
197
Q

Drawbacks of Thatcher’s indirect societal successes?

A
  • The right to buy mainly affected better off areas and had little impact on council estates with many already facing dereliction. Profits also had to be used to pay off their debts rather than reinvesting, TMT the number of council houses available for rent decreased while waiting lists increased with some being forced to stay in B and Bs (expensive)
  • Oxford declined to give her an honorary degree due to her higher education spending cuts
  • The arts were strongly against her, red wedge was a musical collective that campaigned against Thatcher in the 1980s.
  • Tv shows like the boys from the black stuff showed the social repercussions of thatchers neoliberal policies.
  • Leading members from within the chancellors office spoke out on the impact of thathcer’s policies on already deprived areas, arguing it was unaccpetable.
198
Q

What were some of the main aspects of thatcher’s society?

A
  • economic impacts on society
  • Anti nuclear war (Greenham common women’s peace camp)
  • environmentalism (Chernobyl)
  • poll tax
199
Q

What caused the CND to enter prominence again during the Thatcher years?

A

Her policy of deterrence and the steepening of the arms race in the ‘new cold war’ of the 1980s encouraged more anti nuclear war sentiment

200
Q

What was the catalyst of the greenham common women’s peace camp?

A

As a result of American cruise missles being sent to the UK. The nuclear missles stored at the camp was a cause of contention.

201
Q

Explain the events of the Greenham common women’s peace camp?

A

In 1981, 36 women chained themselves to the fence at the camp, this later grew into 250 women bloackading the camp and a camp was set up. Newbury council evicted the camp but a new one was set up within days. On april 1st following the mass recognition of the protest, 70,000 protesters formed a human chain from Greenham to Aldermaston. the camp repeatedly was taken down but remained until 2000, despite missiles being taken down in 1991 - but remained to protest the upcoming trident program.

202
Q

Why were all the Greenham common protests women?

A

In Feb 1982, it was decided all protesters should be female, in the name of protecting their children and future generations.
It was a challenge against the traditional notion that a women’s place was in the home.

203
Q

What was the media reaction to the Greenham common peace camp?

A

Demonized the protests, describing it as a witches coven laden rife with criminal activity, deeming the women a threat to the state and family values.

204
Q

What two environmental disasters and other factors drew attention to environmentalism?

A

Bhopal Inidia 1984 disaster and Chernobyl.
There was a growing understanding of the effects pollutants had on the atmosphere like the discovery of the antarctic ozone hole caused by CFC’s in the 1980s, as well as the effect of acid rain on limestone buildings, causing groups like greenpeace and friends of the earth to grow massively.

205
Q

Exlpain the Bhopal gas leak india?

A

In December 1984, a gas leak at a pesticide factory killed between 3-8,000 people with thousands more suffering long term damage.

206
Q

Explain the Chernobyl Nuclear disaster and its impacts on environmentalism?

A
  • On April 26th 1986, one of 4 nuclear reactors at Chernoby lexploded, moscow was slow to admit what had happened despite Sweden detecting high levels of radiation.
  • Released 100x the radiation of Fat Boy and Little Man
  • The radiation affected all of Europe, and heightened attention of the impacts humans could have on the environment.
207
Q

What was the poll tax?

A

Thatcher’s final attempt to reform local taxes, changed council taxation to make everyone pay the same amount, whereas it previously was based on property ownership. thatcherites believed it would be more fair if everyone contributed the same, forcing councils to be more efficient and careful. It would mean a poor pensioner would be paying the same as a millionaire and local taxation would likely go up

208
Q

What were the impacts of the poll tax?

A

When it was introduced in Scotland in 1989 it was unpopular from the outlet, but was still introduced to England and wales in 1990, highlighting thatcher’s unwillingness to alter her course, portraying her as increasingly aloof and unable to connect to people.
Anti poll tax unions urged people not to pay, 30% were non payers with no one able to enforce it
In March 1990, 200,000 were involved in an anti poll tax demonstration in Trafalgar Square which turned into a riot, 5000 injured, 300 arrests, again criticisms of the politicisation of the police force.

209
Q

What were the main areas of foreign affairs under Thatcher?

A

Falklands
Hong Kong
First gulf war
Reagan/ special relationship
Cold war

210
Q

Why were Thatcher and Reagan on good terms and have a good relationship?

A

Strong personal and ideological bond
- Both from the same generation shaped by WW2
- Thatcher saw the Americans as heroes who had twice saved Europe
- Thatcher’s hard line stance on Falklands made the link all the more powerful
- In 1986, Thatcher gave permission for the US to use British airbasesto bomb libya, despite its unpopularity in Britain.

211
Q

What were the differences in Thatcher and Reagan’s relationship?

A

in 83, the US invaded Grenada following a communist coup, despite the advice of Thatcher,

212
Q

What started the ‘second cold war’?

A

The Soviet invasion of Afghanistan on the 24th December 1979

213
Q

How did Thatcher support the US during the second cold war?

A
  • In 1986, Thatcher gave permission for the US to use British airbasesto bomb libya, despite its unpopularity in Britain.
  • Thatcher agreed to deploy US cruise missles in Britain
214
Q

What were the impacts of Britain’s involvement in the second cold war on society?

A
  • BBC TV Drama ‘Threads’ explored the aftermath of nuclear war on a british city
  • Government provided ‘protect and survive booklets’ in the event of nuclear war
  • Number of songs about nuclear war by Kate Bush, Sting and Frankie goes to hollywood
  • In 1983, 200,000 marched with the CND in London to oppose nuclear weapons
215
Q

In what ways did Thatcher contribute to the end of the cold war?

A
  • Combative style and determination in confronting the USSR in the 1980s
  • Openly willing to negotiate with the reformist leader Mikhail Gorbachev
  • Her support of Reagan and the USA’s special relationship
216
Q

How did Thatcher discuss Gorbachev?

A

The younger leader (30 years younger) was liked by Thatcher - ‘He and I can do business together’ and she encouraged Reagan to negotiate with Gorbs, culminating in the Reykjavik summit where both were prepared to make compromises, and the Intermediate Range Nuclear forces treaty was signed in Washington in 1987

217
Q

How did Britain come to own Hong Kong?

A

In 1842, China granted Britain Hong Kong on a permenant basis, adding Kowloon in 1860, and the kowloon peninsula in 1898 - these were known as the new territories and only granted on a 99 year lease

218
Q

Why was Hong Kong succesful?

A

Following 1949 and the communist policies employed by Mao Zedong, Hong Kong became a Haven for those trying to escape communism. Thousands of Businessmen and bankers fled to Hong Kong, bringing their wealth with them, turning HK into a world centre of Manufacturing, commerce and finance.

219
Q

Why was Hong Kong a source of conflict during Thatcher’s permiership?

A

The PRC expected to receive HK back in 1997 under the 1898 99 year lease, Deng Xioeping wanted to use it as an asset to modernise China. However, opinion polls showed that 95% of Hong Kongers wanted to stay British

220
Q

Why was Britain not in a strong bargaining position?

A
  • They could not just give up the new territories but keep HK + Kowloon because they provided the city with its energy and water
  • They did not hold the moral high ground as they originally acquired the territory through military force, making China sign it away against their will
    Britain could only compromise in regards to HK
221
Q

What ended the conflict in HK?

A

The December 1984 Sino-British joint decleration

222
Q

What was the Sino-British joint declaration?

A
  • Britain agreed to the expiry of the lease of the new teritories in 1997 and all areas of HK would return to the PRC
  • In return, HK would be treated as a ‘special adminstrative region (SAR) until 2047, leaving its capitalist economic structure unaltered

Britain did not push as hard as it could have because it wanted to keep its future economic prospects with China open

223
Q

What was the First Gulf war?

A

Iraq under Saddam Hussein invaded Kuwait in 1990-1991 after invading Iran.

224
Q

Explain thatcher’s involvement in the first gulf war?

A

Thatcher pushed for military action, whilst Bush was more cautious, but she pushed and he agreed. This led to a sustained areil bombardment followed by ground forces which collapsed the Iraqi army quickly. The coalition did not invade Baghdad as they thought a rebellion would overthrow Hussein, but he remained in power until the second invasion in 2003.

225
Q

What were public thoughts on the first gulf war?

A

Public sympathies remained with Kuwait, who had been annexed without reason.

226
Q

Why were many tories in favour of Europe at the time?

A
  • New markets
  • Ressistance to scoialism and communism
  • Seen as a sister to NATO which many Tories supported
  • Thatcher’s 1979 manifesto was fully pro Europe
227
Q

What was thatcher’s position on the EEC in 1979?

A

Full support, evident in her 1979 manifesto

228
Q

What is Handbag diplomacy?

A

A term used to describe Thatcher’s abrasive style of negotioation (particularly in the British Budgetary question) in comparison to the more subdued techniques from the foreign office - secured a £700 million rebate - appeared to break consensus

229
Q

What kickstarted the British Budgetary question 1981-1984?

A

Thatcher’s treasury advised her that the EEC membership was costing £1 billion a year, because it recieved so little from the common agricultural policy- claiming she could not play ‘sister bountiful to the community’

230
Q

What were the events of the British Budgetary question?

A

Thathcer made herelf unpopular with European leaders, demanding ‘her money back’ saying Britain ‘saved their necks in the war’ The French president read his nnewspaper everytime she talked, the German chancellor continuosly yawned and the chauffers of the leaders revved their engines. Nonetheless at a summit at fontainebleau in 1984 she secured a 66% rebate at £700 million

231
Q

Impacts of the British budgetary question?

A

Secured £700 million rebate
Scoured relations with some European leaders through her handbag diplomacy and unwillingness to compromise

232
Q

When was the single European act signed?

A

1986

233
Q

What did the single European act say?

A

It was the biggest step to a centralised Europe:
- Commitment to closer monetary and political union
- Princple of supranationallity in which was the principle of subordination of member states to the EEC
- The right of individual member states to veto majority votes was abolished

234
Q

Why was it shocking that Thatcher signed the Single European act?

A

Thathcer willingly signed away some British soveriegnty, but she was more keen to make free market Europe a reality. She reccomeded the act with full support and it went through with no controversy

235
Q

When was the Bruges speech?

A

1988

236
Q

What did the Bruges speech say?

A

it was a rallying cry to prevent the absorption of national identities into a centeralising europe. She still wanted a united Europe, but didn’t want everything from the centre - she attempted to appeal to the ordinary people of France and Germany rather than the Beaurocrats - Thatchers support for the EEC reduced

237
Q

What economic factors encouraged a push to join the ERM?

A

By 1989, inflation was rising rapidly and there was a large trade deficit, as a result of Nigel Lawson’s ‘giveaway budget’ which lowered the basic rate of income tax to 25% combined with the reducing usefulness of north sea oil

238
Q

What is the ERM?

A

The ERM is the Europe Exchange Rate Mechanism - a system where the currencies of European states were fixed in order to maintain currency stability

239
Q

Who supported Britain joining the ERM?

A

Geoffrey Howe (foreign sec) and Nigel Lawson (CofE) supported it, whilst Thatcher remained unsure of it

240
Q

Explain the ERM contresversy?

A

->Lawson had started to secretly track the value of the Deutschmark behind Thatcher’s back
->Howe and Lawson increasingly pressured her to join the ERM and she resisted
->At a summit in Madrid in June 89, H&L walked into Thatchers hotel room and threatened to resign if Thatcher did not join - she said she would join when appropriate
->Upon finding out Lawson was checking the Deutschmark, Howe was demoted to Deputy PM and replaced by Major, whilst Lawson resigned.
->In a top level meeting in Romein oct 1990 she declared Britain would never join the single currency and delivered her ‘no no, no’ speech

241
Q

Impacts of the ERM contreversy?

A

Geoffrey Howe resigned and calmly delivered a speech to the HoC which was devestating to thatcher
Lawson was demoted to deputy PM and Major replaced him as CofE

242
Q

What were the main reasons for Thatchers fall from power?

A
  • Loss of ministerial support (Howe’s and Lawson’s resignation, Willie whitelaw stroke
  • Opposition to the poll tax and unpopularity in polls
  • Economic concerns (rising inflation)
  • Divisions over Europe
  • Heseltine’s leadership challenge
243
Q

What economic problems contributed to Thatcher’s fall from power?

A
  • Stock market crashed in 1989 following the financial deregulation of 1986
  • The ‘giveaway budget’ and Lawson boom resulted in a balance of payments deficit
  • inflation had reached 10.9% by 1990, higher than 1980 -> the key aim of monetarism (low inflation) was failing
244
Q

What were the political problems that contributed to Thatcher’s downfall?

A

Many CON MPs feared a loss after an oct 1990 by election where they lost the ultra safe seat of Eastbourne to the Liberals

245
Q

How did the Labour party’s recovery contribute to the downfall of thatcher?

A

Labours recovery under Neil kinnock and John smith had meant a viable opposition reduced support for the conservatives and they exceeded the tories in the polls by 1990.

246
Q

How did the reisngation of Howe contribute to the downfall of thatcher?

A

Howe’s resignation galvanised Michael Heseltine (who was a critic of Thatcher since the Westland affair) into action. He announced a leadership challenge and after Thatcher failed to decisively win the first ballot, Thatcher resigned as PM.

247
Q

In what ways were Thatcher’s Achievements full of paradoxes?

A
  • She intended to reduce taxes, but Britain’s real tax bill increased under her
  • Determined to cut public spending, but by 1990 had reach record high levels, forcing the 1992 gov to borrow nearly £30bn to finance the public sector, due to the benefit payments associated with increased unemployment.
  • Wanted to reduce the power of the centeral gov, but by 1990, there were more government departments than ever before
  • apperead anti Europe and opposed losses of Sovereignty but took Britain deeper than before with the 1986 Single European act
248
Q

Why did feminists criticise thatcher?

A

She was not willing to support the movement for female equality nor promote women in politics, appointing only one women - Linda Chalker - into her cabinet
Known as a ‘women but not a sister’ as she introduced no structural changes that advanced the role of women. many suggest she did this so she could remain a lone female in government and use this to exploit her male colleagues

249
Q

How do some historians describe her social attitudes?

A

Many describe her as a Victorian liberal as she often expressed admiration for Victorian Virtues.