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Modern Britain Y2 > (!) 5:17 The fall of Thatcher and the rise of Major > Flashcards

(!) 5:17 The fall of Thatcher and the rise of Major Flashcards

1
Q

The decline of Thatcher can be traced back to…

A

1987, when a number of problems began to surface

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2
Q

What was the problem with Thatcher’s economic policies?

A

> In 1987, the stock market crashed following the Big Bang, the deregulation of the City in 1986

> Thatcher’s Chancellor, Nigel Lawson’s policies led to the rapid expansion of the economy in the ‘Lawson boom’, which resulted in a balance of payments problem

> By 1990, inflation had risen to 10.9%, higher than in 1980. This was a significant problem, as this government had set its key economic objective as low inflation

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3
Q

What were the political problems in Thatcher’s later years?

A

> Many Conservative MPs feared defeat at the next election.
The loss of the seat of Eastbourne, which was previously thought safe, to the Liberals in the October 1990 by-election was especially alarming.

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4
Q

The Conservatives’ unpopularly was significantly due to…

A

the introduction of the Community Charge/poll tax

> Thatcher was strongly advised to drop the scheme, but she ignored this advice

> After the poll tax riot in March 1990, the government’s popularity in the opinion polls fell sharply

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5
Q

These problems helped to heighten…

A

divisions within the Conservative Party, over economic policies, Europe and Thatcher’s style.

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6
Q

By 1990, what was Labour’s situation?

A

Labour had evidently recovered well under Neil Kinnock and John Smith. Throughout 1990, it beat the Conservatives in opinion polls

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7
Q

Tensions in the Conservative government reached a peak when…

A

Sir Geoffrey Howe resigned from the government

> This resignation motivated Michael Heseltine, a long-standing critic of Thatcher, to take action

> He announced a leadership challenge

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8
Q

What happened in the first ballot of the leadership election?

A

> Thatcher got 204 votes against Heseltine’s 152
This meant a second ballot was needed, and initially Thatcher intended to continue. However, most of her cabinet ministers advised that she would not win.
Therefore, she resigned

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9
Q

What happened in the second ballot of the leadership election?

A

Douglas Hurd and John Major entered the race, with John Major winning with 185 votes

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10
Q

What was unique about John Major?

A

> He was very unexpected to become Prime Minister, as he was such an undistinguished figure: he had been in the Cabinet for just 3.5 years.

> He had a working class background, living in Brixton, did not attend higher education

> He was one of the youngest PM’s of Britain

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11
Q

Just 18 months before he became prime minister…

A

only 2% of the public had heard of him

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12
Q

Major said he wanted to create…

A

a classless society

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13
Q

What assumptions were made about Major when he became PM?

A

> That he would not last long as PM, since the Conservatives were now in their third term
That he would simply be a ‘caretaker’ PM, holding the position after Thatcher’s mess before a ‘proper’ PM would take power
That Thatcherism would live on under Major

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14
Q

Were these assumptions correct?

A

> Surprisingly, Major was PM for 7 years, making him the third-longest post-war PM in power
Rather than being a ‘caretaker’ PM, he made some important changes

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15
Q

What were the initial problems Major had when he became PM?

A

> He only had a majority of 21 seats, which was barely sufficient

> He has to deal with significant economic problems: 10% inflation, 12% interest rate - high interest rates seemed to have no effect on inflation

> He has to deal with the poll tax, losing opinion polls and Conservative party divisions

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16
Q

What happened in the 1992 election?

A

> Major had an unexpected victory, winning over 14 million votes. This was the highest number of votes ever gained by a British political party

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17
Q

What did the 1992 election prove?

A

> That Thatcher’s policies were still popular, but not her as an individual. The Conservatives could win without Thatcher, despite what some people thought.

> That Major wasn’t simply going to be a ‘caretaker’ PM.

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18
Q

What was the economic situation when Thatcher left office?

A

> 10% inflation

> Rising unemployment

> High interest rates - 12%, which were not effective at lowering inflation

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19
Q

Major’s government had inherited a difficult economic situation at the end of 1990:

A

> Declining manufacturing output
High interest rates
A steep rise in unemployment
Slump in house prices

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20
Q

From mid-1991 to early 1992, unemployment rose…

A

from 1.6 million to 2.6 million

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21
Q

Many homeowners were trapped in…

A

‘negative equity’ (having to repay mortgages that were higher than the current value of their home)
> many had their homes repossessed
> this affected traditional Conservative voters

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22
Q

With an election coming soon, what did Major’s government do?

A

Resort to high public spending

> half of this spending was forced, as a result of rising unemployment

> huge government borrowing was used for subsidies on transport and increased spending on the NHS

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23
Q

What happened within a few months of winning the 1992 election?

A

Britain was suffering an economic crisis and was forced to leave the Exchange Rate Mechanism (ERM)
This became known as Black Wednesday

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24
Q

Why was Britain forced to leave the ERM?

A

To stay, Britain was supposed to keep the pound above the lower currency exchange limit mandated by the ERM.

Britain’s inflation rate was too high.

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25
When was Black Wednesday?
16th September 1992
26
How much did Black Wednesday cost the British government?
An estimated £3.3 billion
27
What were the other impacts of Black Wednesday?
> It put Britain into a recession; large numbers of businesses failed and the housing market crashed > The value of the pound dropped by 20%
28
How was Major's drop in the value of the pound compared to Wilson's in 1967?
> Major's, 20%; Wilson's, 14% > Major's was unplanned; Wilson's was planned and necessary
29
How the the devaluation hurt the Conservative Party?
This was the most important outcome of Black Wednesday > It gave them a bad reputation in the headlines > They lost their reputation as 'the party of the economy' > Now had bad similarities to Labour; people now no longer trust them more than Labour
30
Black Wednesday caused negative equity:
> when a house or flat is worth less than the mortgage you took out on it > house prices go up, but mortgage prices don't go up with them
31
Who was worst impacted by negative equity?
Homeowners, who mostly voted Conservative
32
By 2000, house prices had recovered, but...
this still hurt the Conservatives before the election; contributed to their loss
33
Why might Major be to blame for Black Wednesday?
He had already been in power for 2 years, some may have thought he could have prevented this
34
Why might Major not be to blame?
> 2 years in power was not long enough to prevent this > He had to deal with the problems inherited from Thatcher (10% inflation; 12% interest rates) > No one foresaw being kicked out of the ERM
35
How well did Major deal with unemployment?
Unemployment was on a constant decrease during his premiership, so making good progress 1992: 10.7% (highest) 1997: 6% (lowest)
36
How well did Major deal with inflation?
Well; although it peaked in his earlier years, it significantly dropped from 1992 1991: 8.7% (highest) 1994: just under 2% (lowest)
37
How well did Major deal with inflation rate?
He made it better, although could have been better 1990: 12% From 1993: average of 6% 6% is still slightly high, 3-5% would have been preferable
38
How was GDP growth after Black Wednesday?
Good, consistent, stable growth: around 1% growth annually
39
What does 'sleaze' refer to?
Scandals that involve things like corruption, immoral behaviour, lying, extra-marital affairs
40
What is the impact of sleaze for a political party or government?
> It tarnishes a politician's reputation > Causes a lot of media frenzy > Makes the party look less credible and trustworthy > People often argue a politician should be suspended, or they should resign
41
What was the Cash-for-questions affair?
Began October 1994 > Neil Hamilton and other Conservative MPs were accused of accepting money in return for lobbying (asking questions in Parliament) > Hamilton refused to resign, which irritated Major
42
Hamilton tried to...
sue The Guardian for slander
43
What was the Back to Basics campaign?
Announced by Major at the Conservative Party conference in 1993 > intended as an appeal to traditional values such as 'neighbourliness, decency, courtesy' > however, interpreted as a campaign for socially conservative causes such as promoting the traditional family, though Major denied this
44
How did people react to the Back to Basics campaign?
> People thought Major was being harsh to some members of society: single mothers, homosexuals > Hypocrisy, as Major was having an extra-marital affair > A strongly anti-single mother MP was also having an affair
45
How did Major respond to the Cash-for-questions affair, in an attempt to resolve the reputation of sleaze?
He created the Nolan Committee of Standards in Public Life. However, nothing sufficient came out of it.
46
How did 'Cash-for-questions' affect Major's government?
> The affair lasted for so long, so it kept 'Tory sleaze' in the news right up until the 1997 election campaign, which he lost
47
How did Back to Basics affect Major's government?
> He gave them the label as 'the party of morality' > His government was now vulnerable to every personal moral disclosure > Indeed, there was a series of accusations against Conservative politicians following this
48
How responsible was Major for the Cash-for-questions affair?
> He was not directly responsible since it was the actions of other politicians that caused it > However, he didn't punish harshly for sleaze: he could have encouraged MPs to resign, or made a statement about scandals
49
Why might Major not have made a statement or punished harshly?
This could have harmed party unity
50
How responsible was Major for the Back to Basics issue?
> He has more responsibility here since he introduced the campaign > However, he can't have predicted that these scandals would have come out after making the campaign > At the same time, perhaps he shouldn't have conducted such a provocative campaign, and also, he himself was having an affair
51
Sleaze made Major's government ripe for satire:
> TV shows targeted the government, criticised it > It gave writers something to work with
52
What impact did Back to Basics have on the Conservative Party itself?
It made some feel alienated due to their identity and damaged unity, e.g. Michael Brown on the basis of his homosexuality
53
What does the 'nasty party' refer to?
The idea of the Conservative Party being immoral, lacking in standards or not having care for the people > traditional conservative stances such as being anti-gay, anti-minorities and lacking concern for the poor
54
After the Cash-for-Questions affair, Major...
created the Nolan Committee of standards, however nothing came out of this
55
How was Major's overall response to sleaze?
Weak > He himself was having an extra-marital affair > He could have made statements apologising for scandals > He could have encouraged MPs to resign However, this could have harmed party unity
56
The whole basis of government was undermined by sleaze:
people stopped caring about the government since they were drowning in scandal - apathy
57
When Major became PM, where was his support in the party?
The centre and right, almost totally rejected by those on the left > He had no support among radical Thatcherites, since he ended the hopes for a Thatcherite revolution, he stopped privatisation
58
By the time of Major's election, what was the most divisive issue?
Europe
59
What % of the Conservative Party was anti-Europe?
19%
60
Why was this 19% more vocal than the other 81%?
> The 19% were more radical and vocal > The 81% were more like several smaller factions and therefore weake
61
What is described as Major's 'honeymoon period'?
November 1990 to April 1992 > Major had good relations with his parliamentary party > Major polled very well, above Kinnock
62
However, why might it not be a honeymoon period?
> Less than a week after he became prime minister, seven MPs voted for a rebel amendment to a 'take note' motion on the EC budget > There were a further 6 rebellions relating to Europe before April 1992
63
Who were the Maastricht Rebels?
Conservative MPs who refused to support Major in a series of votes on the implementation of the Maastricht Treaty (Treaty on European Union) in British law
64
Why did these rebels have disproportionate influence?
The Conservatives had a small majority anyway; 22 rebels and a majority of only 18
65
The rebels' refusal to support Major in votes meant that....
the bill's committee stage had to be postponed. > This was harmful as before it could resume, Britain had been forced to leave the ERM, which undermined their European policy and hardened sceptic opinion even further
66
Overall, the Conservative government suffered...
two defeats before the treaty was ratified
67
The Maastricht rebels have been described as...
'the most persistent Conservative intraparty dissent in post-war history'
68
Over two-thirds of the Maastricht rebels had...
supported Major in 1990
69
What was the impact of the bill's passage on Major's support within his party?
> It alienated many from his leadership > Most of those who were pleased with the bill's passage where those who had not voted for him in 1990 Overall, Major had little ideological support from any sector of his parliamentary party
70
What was the EEC?
A common market; free trade; removed internal tariffs
71
What was the Maastricht Treaty?
> EEC became the EU > European integration > Decisions must be ratified by all members
72
Why did the Maastricht Treaty failed to be passed through British parliament at first?
Parliament voted against it > they wanted Major to go to Maastricht and ask for exemptions: to opt out of the single currency and the Social Chapter > they wanted to keep the pound as it was stronge
73
This was an international humiliation for Major:
> It showed that he could not control/unify his own government > European countries pressured him, blaming the party and accusing him of not having control over his own party
74
What happened when John Redwood challenged Major for leadership in 1995?
> Major resigned as party leader (but not PM) in order to approach the challenge as Redwood's equal
75
The leadership challenge proves...
how divided the Conservative Party was > party members were openly challenging Major > Redwood was extremely Thatcherite and wanted to continue the Thatcherite revolution
76
What was the result of the leadership contest in 1995?
Major received 218 votes Redwood received 89 votes
77
Major's victory shows...
> A third of his parliamentary party did not want him to continue - the weakness of his position > that there was no possibility of the Thatcher revolution
78
Overall, much of the support Major had from the centre and right of the party at the beginning of his premiership...
had fallen away
79
Overall, the Conservative party's image was...
ruined by Major's government; it severely damaged their reputation
80
Even when she resigned, Thatcher did not disappear quietly from the political scene:
Even when she left office she promised she would be 'a very good back-seat driver'. She remained an important influence on the Conservative Party for the next 15 years.
81
What was a key reason for Major's rise to the leadership?
> He was Thatcher's choice of successor > Thatcherites saw him as 'one of them'
82
However, this was not accurate of Major:
his instincts were to unify the party, which would be difficult due to ongoing hostility to Heseltine and those who had 'betrayed Thatcher'
83
Nevertheless, what was the party's situation when Major first became leader?
> The Conservatives jumped ahead in opinion polls > The tone of the national press was very positive > The 'honeymoon period' experienced by new governments > Reflected Thatcher's unpopularity by 1990
84
Content summary:
> Economic and political problems in Thatcher's later years > Conservatives' unpopularity in late 1980s > 1990 leadership election > Major's background > Major's initial problems > 1992 election > Problems with unemployment, homeownership > Black Wednesday and its impacts > Inflation and unemployment throughout Major's premiership > Sleaze, the 'nasty party' > The Maastricht Rebels
85
Major's government continued the policy of privatisation:
> The coal industry was privatised in 1994 > Railways were privatised in 1996 > They also planned to privatise the Post Office, but ran into opposition and so abandoned this
86
Major also introduced the Private Finance Initiative (PFI):
These were public-private partnerships that meant private companies would fund infrastructure improvements and then deliver public services paid by the State/
87
Major also introduced the Citizen's Charter in 1991:
This was an attempt to give public service users more power over the quality of the services they should expect. > e.g. more testing in education
88
However, some elements of the Citizen's Charter became the target of satire:
e.g. the 'Cones Hotline' for motorists
89
Pit closures continued:
in 1991, Heseltine announced the closure of 31 pits including some in Nottinghamshire
90
What was the response to this:
Outcry forced Heseltine into a U-turn in the short term, although eventually the closures went ahead
91
Major's government also had to deal with...
the BSE crisis (Mad Cow Disease) which led to British beef being banned in Europe
92
None of these policies or events in themselves appear to be big enough to undermine a government's reputation:
but together, and combined with other issues such as sleaze, they helped to cement an image of incompetence
93
What was Thatcher's approach to Northern Ireland in her final years?
The government banned organisations which were believed to support terrorist activities from broadcasting in Britain
94
However, broadcasters got around this ban by...
employing actors to read the words of those affected
95
However, the State's activities during the Troubles also came under scrutiny:
there were accusations of a 'shoot to kill' policy after three IRA members were killed by the SAS in Gibraltar in 1988
96
There were also high-profile miscarriages of justice revealed:
the Birmingham Six and the Guildford Four
97
The atrocities of the Troubles continued:
loyalists and republicans engaged in killings and the IRA started to target mainland Britain
98
For example, what happened in 1989?
The London Stock Exchange was bombed by the IRA
99
What happened in 1993?
The Warrington bomb - two children killed by the IRA
100
However, there was a political breakthrough in Northern Ireland under Major:
from 1993, the government received secret messages hinting that the IRA was ready to discuss a peace agreement
101
However, there were still big obstacles to overcome:
> Unionists were fearful of being 'sold out by the British' > The Republicans were still deeply hostile to the British
102
Nevertheless, it was helpful that...
the first steps in the peace process were taken by a Conservative prime minister > i.e. a Labour leader may have struggled against Conservative and unionist backlash
103
Major had a good working relationship with...
the Irish Taoiseach, Albert Reynolds > Bill Clinton also made a constructive contribution, encouraging the IRA away from armed struggle
104
In 1993, Major and Reynolds...
went public with their joint Downing Street Declaration
105
In 1994, the IRA...
announced a ceasefire
106
At the same time, loyalist paramilitaries...
matched this with a ceasefire of their own
107
There was a strong sense of...
war-weariness on both sides of the conflict
108
Getting a final agreement was very difficult:
> Unionists did not believe in the IRA's commitment to peace > The IRA got impatient and went back to violent methods
109
For example, there were bomb attacks in...
the financial district at Canary Wharf in London and in Manchester in 1996
110
Regardless...
the peace process continued
111
By the last years of Thatcher's premiership, divisions had become more apparent in the Conservative Party:
when Thatcher was seen as an electoral asset, these disagreements didn't seem to matter. However, as her popularity waned, they became more open.
112
Why did Nigel Lawson, Chancellor, resign in 1989?
He was infuriated by Thatcher's use of Professor Alan Walters as an economic adviser
113
How did Thatcher alienate Geoffrey Howe?
She moved him from the Foreign Office to a lesser post, and he resigned a year later
114
Despite Major's efforts to unify the party and the election success of 1992...
the divisions in the Conservative Party worsened
115
Right-wingers pushed for...
more radical social policies
116
Politicians with leadership ambitions...
saw a chance to advance their claims
117
Eurosceptics...
saw an opening to push the government to the edges of Europe, if not out of the EU altogether
118
What effect did these divisions have?
They drowned out any achievements, just as scandals and sleaze had done
119
There was continued press speculation about...
possible challengers for the leadership, such as Michael Portillo and John Redwood
120
The right-wing press was...
relentlessly hostile, openly calling for a strong leader to replace Major and 'save the party'
121
By the summer of 1995...
Major felt so insecure that he called for a leadership election so that he could be re-elected to his own position
122
What were Major's motives to call a leadership election?
To silence his critics and re-establish his authority
123
John Redwood was backed by...
Thatcherites and Eurosceptics
124
However, despite this leadership win...
Major's problems continued
125
When his government only had a small majority:
89 Conservative MPs had voted against him
126
The attitude of the press remained...
hostile as ever
127
Thatcher added fuel to the criticism of Major:
she encouraged the Eurosceptic rebels by demanding a referendum on Europe
128
Who did Thatcher support in the leadership election of 1995?
John Redwood
129
In the run up to the 1997 election...
her comments seemed to show more approval of Tony Blair than on John Major
130
Satire presented Major as an inadequate leader, examples:
Spitting Image and cartoons in The Guardian
131
How many sex scandals involving MPs having extramarital affairs were there?
Over a dozen
132
In 1994, Major set up the Scott Enquiry:
this investigated illegal arms dealing, and proved that government ministers had broken the rules by enabling the arms company Matrix Churchill to supply arms to Iraq
133
Two leading Conservatives were...
convicted of perjury
134
The British economy began to improve almost immediately after Black Wednesday:
leaving the ERM meant that Britain no longer had to keep high interest rates to protect the stability of sterling
135
What signs of recovery were there?
Unemployment rates slowed down and the housing market began to pick up
136
In comparison, the German economy was..
struggling with the huge costs of unification and had sluggish growth rates compared to Britain
137
What was the economic situation by 1997?
> Unemployment was down > Productivity was up, though not by much > Consumer spending was up > Car ownership increased > House prices rose, and negative equity was no longer an issue > Business was supportive of government policies
138
Yet while the economy had improved...
the people were reluctant to give Major's government credit for this

Modern Britain Y2 (7 decks)

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