90s - Fall of Thatcher and Rise of Major Flashcards

1
Q

When was the stock market crash under Thatcher, and what was this caused by?

A

1987 as a ramification of the 1986 deregulation Big Bang

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2
Q

What was Lawson’s response to the 1987 crash?

A

His 1988 budget led to rapid economic expansion in the ‘Lawson Boom’, but this resulted in a BOP issue.

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3
Q

What was inflation in 1990?

A

10.9%, higher than when Thatcher took office.

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4
Q

Which safe Conservative seat was lost in a by-election in October 1990?

A

Eastbourne to the Liberals.

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5
Q

What was Thatchers economic shift in 1989 that contributed to FOT?

A

Introduced of the poll tax, and after the March 1990 riot her popularity in opinion polls fell sharply.

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6
Q

What was the minister resignation that contributed to Thatcher’s demise in 1990?

A

Geoffrey Howe

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7
Q

What did Howe’s resignation act as a catalyst for?

A

Heseltine to announce a leadership challenge, and after failing to win on the first ballot she resigned as PM.

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8
Q

What were the numbers for the first ballot in Heseltine’s leadership challenge?

A

Thatcher 204, Heseltine 152 - not a sufficient enough majority to be successful.

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9
Q

What was Major seen as by the Conservative Party, and what was his actual real aim?

A

Seen as a true-blooded Thatcherite, but was actually more concerned with party unity.

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10
Q

Why did the Conservatives jump forward in the 1991 opinion polls?

A

‘honeymoon effect’ of a new government, but also Thatchers unpopularity had set the opinion polls low regardless.

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11
Q

Why would uniting the Party under Major be difficult?

A

There was ongoing hostility towards Heseltine and a fierce determination amongst some to take revenge against those who ‘betrayed Maggie’.

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12
Q

When did Major abolish the poll tax?

A

November 1991, he didn’t do this immediately as he risked splitting the Party.

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13
Q

Where did the opinion polls place Cons, Lab & Lib in the run up to the 1992 Election?

A

Cons 29%, Lab 41%, Lib 15%

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14
Q

What tactic of Majors was credited in the 1992 election?

A

Soapbox politics, making impromptu speeches on a soapbox in Luton.

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15
Q

What were the Cons seen as a safe pair of hands for?

A

The best party to get the country out of the economic recession.

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16
Q

What was the increase in unemployment from 1991-1992?

A

1.6M - 2.6M.

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17
Q

How were homeowners trapped in ‘negative equity’?

A

They were having to repay mortgages greater than the current value of their homes. This affected traditional Tory voters.

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18
Q

What was the increase in public spending in 1992 for?

A

To win votes, huge government borrowing was used to subsidise transport and increased NHS spending.

19
Q

What was Black Wednesday?

A

Majors U-turn to leave the ERM in September 1992

20
Q

What was the ERM?

A

Exchange-Rate Mechanism, where all currencies were stacked against the relatively stable Deutschmark, and required to keep a balance of 2.5 marks to the pound.

21
Q

What was the cause of Black Wednesday?

A

Too many people invested in the pound, causing people to then speculate against it and withdraw their money. Lamont set 15% interest rates to increase investment, but they had to withdraw because they fell too far below the 2.5:1 exchange rate.

22
Q

What were the economic ramifications of Black Wednesday?

A

Not as bad as feared, the economy stabilised and leaving the ERM left Br with more economic autonomy, and other benefits.

23
Q

What were the political ramifications of Black Wednesday?

A

Cons no longer trusted as a safe pair of economic hands, drop of support in opinion polls. Majors authority weakened and he was fiercely criticised by media. Lab shot ahead in polls.

24
Q

What did leaving the ERM prevent?

A

It prevented Britain having to keep high interest rates to protect the sterling and allowed exchange rates to float down, helping exports.

25
Q

What were the social ramifications of Black Wednesday?

A

Unemployment slowed and the housing market picked up.

26
Q

What past economic policies helped post-Black Wednesday economy?

A

Financial deregulation and flexible working practices, along with the American economy coming out of recession meant that the City was an economic powerhouse and the average person could afford to invest again.

27
Q

How had the economy improved by 1997?

A

Unemployment down, productivity up. Consumer spending up + car ownership increase. House prices rose.

28
Q

Why did the Cons government not get any credit for the economic recovery?

A

It was Majors decision to enter into the ERM in 1989 anyway, so it lacked the ‘feel-good factor.

29
Q

What was the 1994 Scott Enquiry?

A

Set up by Major to investigate illegal arms dealing, and it proved that government ministers had broken the rules and been dishonest in allowing Matrix Churchill to supply arms to Iraq.

30
Q

What was the Cash-For-Questions affair?

A

Harrods owner, Mohamed Al-Fayed was paying Neil Hamilton in return for favours in Parliament, who consequently lost a public libel case over this.

31
Q

What was the speech Major gave in 1992 that backfired hugely?

A

‘get back to basics, to good old fashioned British values of respect, dignity and honesty’.

32
Q

How did Major continue privatisation policies?

A

Coal industry privatised in 1994, railways in 1996. Government attempted to privatise the post office but failed.
Private Finance Initiative were public-private initiatives that meant private companies would fund infrastructure and deliver public services.

33
Q

What was the Citizens Charter?

A

1991 - provide information about public services so people had realistic expectations and more power over them. Fore example, there would be more exams and schools had to publish results.

34
Q

What was the Cones Hotline?

A

Part of the citizens charter - a phone number motorists could all if motorway lines were closed off. Closed after 20,000 calls in 1994.

35
Q

How did pit closures continue under Heseltine?

A

In 1991 he closed 31 more. Many of these were in Nottinghamshire, who supported Thatcher against Scargill so the public outcry forced Heseltine to U-turn.
The pits eventually closed in 1996.

36
Q

What health crisis did Major also have to deal with?

A

Mad Cow Disease - recognised as a threat to human health in 1996 - British beef banned in Europe.

37
Q

Why did Nigel Lawson resign in 1989?

A

Thatcher was taking advice from Professor Alan Walters, who had contradictory ideas to her Chancellor, Lawson.

38
Q

How did Thatcher alienate Geoffrey Howe?

A

Moved him from Foreign Secretary to Employment Secretary, he resigned a year later.

38
Q

How did Thatcher alienate Geoffrey Howe?

A

Moved him from Foreign Secretary to Employment Secretary, he resigned a year later. This was over her style of leadership.

39
Q

What did right-wing Cons campaign for?

A

More radical social policies, and many saw an opportunity to advance leadership claims. Eurosceptics saw an opening to push the government out of the EU, and the divisions ended up drowning out achievements.

40
Q

In the summer of 1995, what did Major call?

A

A leadership election, ‘put up or shut up’.

41
Q

What did Major do immediately pre-leadership vote that won him the vote?

A

Appointed Heseltine his deputy PM, who made his support publicly known and he won 221-89. However, between Redwood’s 89 and 22 abstinences, Major had over 100 non-supporters in the Party.

42
Q

How did Thatcher increase Major criticism?

A

She demanded a referendum on Europe, and her 1993 memoirs were lukewarm on Major. She supported Redwood in the 1995 leadership vote and showed Blair more support than Major in 1997.