36 - Domestic Policies Flashcards
How did the Blair government seem to manage the economy? What 2 economic factors remained low under Chancellor Brown?
Successfully
Inflation and unemployment
Who did Brown allow to set interest rates? What was reduced as a result of this?
Bank of England
Government interference
Whose spending plans did Brown keep up with?
Major’s government
What type of taxes remained low? What happened to other taxes?
Income tax
Increased
What Chapter did Blair’s ministry accept that Major refused? What 2 things were introduced from this?
Social Chapter
Minimum wage and higher pensions
In what 2 areas was spending maintained?
Healthcare
Education
Between what time period did the value of gold fall in international markets? How many ounces of gold did Brown sell?
1999-2002
13 million ounces
Why was Brown selling gold a mistake? How much in US$ did Britain lose by 2005?
Its value recovered
$3 billion
Who did Brown borrow heavily from to meet the shortfall in government spending? Why was this an issue in the late 2000s?
Banks
Banks demanded repayment
What difficulties were present in the first Blair administration?
Economic difficulties
What disease broke out in 1999? Who had little idea of how to deal with this?
Foot-and-mouth disease
Blair’s administration
What 2 ways did Blair try and tackle foot-and-mouth disease?
Wholesale slaughter of livestock
Closing off the countryside
What 2 groups of people faced hardship from Blair’s response to foot-and-mouth disease?
Farmers
Tourists
What did many suggest as a method to tackle foot-and-mouth disease?
Mass vaccination
When did the fuel crisis take place? What 2 groups made an alliance to protest against petrol taxes?
2000
Farmers and lorry drivers
What did protesters block off in the fuel crisis? What position did this leave Britain in?
Petrol refineries
Standstill
What were there serious shortages of during the fuel crisis? What were hospitals threatened with?
Food
Closure
What were workers unable to do during the fuel crisis?
Work
What 2 groups didn’t realise the impacts of the fuel crisis? What settlement was reached relating to petrol duties?
Government and protesters
They wouldn’t automatically increase
What 2 economic factors were the Blair years noticeable for? When was this acceptable?
High credit levels and consumer spending
In times of prosperity
What did high credit levels and consumer spending lead to in the recession?
Significant problems
What 2 things did Blair’s second term see economically?
Continued low unemployment
Business modernisation
What base continued to decline under Blair?
Manufacturing
What type of energy had the Labour government committed themselves to? How much UK energy did they intend to supply by 2010?
Renewable energy
10%
How could Labour’s energy plan be described? What did the government controversially invest in to make up the shortfall?
Over-ambitious
Nuclear power
What kind of economy did Blair and Brown inherit? What did they do despite this?
Buoyant economy
Took credit for it
What was Blair and Brown’s economy fuelled by? When did a recession hit?
Credit
2008
What did many people find themselves saddled with in the recession? What did the government find themselves with?
Debt they couldn’t repay
Deficit
What measures did the government have to implement to tackle the deficit of the recession?
Measures of considerable austerity
