5.4 the effect of thatcherism on politics and party development Flashcards
decline of the wets
who were the ‘wets’ what were they committed to?
men who had been appointed by edward heath Eg. Jim Prior, Lord Hailsham and William Whitelaw
- they were committed to the post-war consensus
decline of the wets
what did Moderate MPs like Prior believe?
- preventing economic policies from causing social breakdown
- he thought monetarism would follow this and would lead to rising inequalities
- one nations believed in the noblesse oblige relationship with the working class
wets in government
what did Thatcher believe? who did she promote? apart from who?
- Thatcher excluded them from economic discussions and she believed they were weak
- she promoted thatcherite ‘drys’
- except for prior, as he was intitialy made employment secretary, moved to secretary of state for Northern Ireland in 1981
wets in governmnet
what did Prior publicly express?
- doubts about monetarism
- his demotion wsa a clear sign thatcher would not change her policies
wets in government
1981 reshuffle ‘purging of the wets’ who was purged
- sir ian gilmour
- loard soames
- mark carlisle
rise of the thatcherites
following the reshuffle: who dominated the cabinet? when would Thatcher be popular?
- thatcherites dominated the cabinet
- 2 more election victories would see thatcher as popular with the majority of the conservative pary
- she viewed herself as radical in 1981 but by the end of the decade the post war consensus ideas were a minority
Thatcher and Heseltine
Who was Heseltine? what did he believe about economic intervention?
- Heseltine was a ‘wet’ who survived the 1981 reshuffle
- he believed economic intervention was required to relieve the impact of unemployment
Thatcher and Heseltine
1981 riots: which zones did he develop?
Enterprise Zones and Development Corporations in unemploy,ment black spots
- traditional corporatism
The Westland Affair
what was the premise of the Westlanbd affair: helicopters, who did Thatcher back? who did Heseltine back?
- mid 1980s
- Westland Helicopters was struggling, and Thatcher approved of US helicopter manufactuer Sikorsky who made an offer to buy Westland helicopters
- Heseltine believed this would lead to British dependence on the US for defence, backed a european consortium instead
The Westland Affair
What was the outcome of the westland affair? who leaked what to the press?
- Thatcher urged Westland’s managers to make the decision, which would mean Sikorsky would buy the company
- Heseltine leaked a letter to the times which showed Westland would lose orders across Europe as a result of the Sikorsky deal
- Leon Brittain leaked a second letter, rubbishing HEeseltines claims
- Sikorsky bought Westland
- Heseltines resigned
- Brittain was sacked for leaking documents
The Poll tax
protest as a result of the pol tax in Trafalgar square
ABAPTF
- All Britain Anti-Poll Tax Federation demonstrated
- March 1990
- 200,000 protestors turned into riot
The Poll tax
what did it lead to an increase of? what did taxpayers do? publicity?
- increase of tax bills
- taxpayers refused to pay
- extremely bad publicity, as pensioners who couldn’t afford the charge were jailed
The Poll tax
when was the law made unenforceable?
- South Yorkshire Police admitted in 1990 that it wouldn’t be possible to arrest everyone disobeying the law
- it was unenforceable
The Poll tax
Thatcher refused to..?
- compromise, which led to a feeling that she needed to be replaced
growing unpopularity
why were the conservatives unpopular by November 1990
4 main reasons
HIR, WP, PD, GHR
- High Interest Rates (15%)
- Water Privatisation
- Political Divisions over power given to the EEC
- Geoffery Howe’s resignation (deputy PM) in protest of Thatchers eurosceptic policies
Thatcher and Europe
divisions over europe: what were Thatcher’s opinions? what were the divides over? when did they become a major problem?
- Thatcher was in favour of a european free market, but didn’t want european intervention in frear of socialist policies
- there was also divisions over the single currency of the pound
- these divides were a major problem from the late 1980s
leadership challenge
leadership challenge: what was the result?
- Heseltine challenged her for leadership, and she realised she had lost support, so withdrew
- John Major’s victory indicated the conservative party wanted to continue with similiar policies. He was not a ‘wet’, the least pro-european, and a thatcherite candidate
the conservatives under major: rethinking the poll tax
in the short term, what did Major do to government grants?
- increased the governmnet’s grant to local authorites to reduce the poll tax bills by 50%
the conservatives under major: rethinking the poll tax
What did Heseltine do to come up with a replacement for the tax? what did he re-establish? exceptions?
- re-established the local taxation and property value link which ahd been abandoned under the poll tax
- there were also exceptions for people living alone so they would pay less than people living in households with multiple wage earners
the conservatives under major: rethinking the poll tax
what ddi the new tax abandon in terms of thinkin?
- Thatcher’s neo-liberal principle that taxpayers should share the burden of government spending to make local government accountable
privatisation and the public sector
Major’s privatisation policies in the 1990s
- most electricity companies in 1991
- remainder in 1995
- British rail privatised in 1992
privatisation and the public sector
major problems with the privatisation of these companies: water bills? bonuses? utilities? subsidise?
- water bills increased by 40% in the first 5 years of privatisation
- chief executives in water and gas companies recieved multi-million bonuses despite this
- privatised utilities were often sold below market value
- government continued to subdise private companies like train operatrors
privatisation and the public sector
privatisation and consensus
- there was a new consensus against nationalisation, but it didn’t lead to less state spending and in some cases later privatisations were accompanies by long-term government subsidies
economic policy
what were Majors main priorities? what did he abolish/
- growth and low inflation
- National Economic Development Council was abolished by Major in 1992