Booklet 5: 1987-97 Flashcards
What were some of the reasons for Thatcher’s fall from power?
- economic issues: failed to reduce inflation even though this was her governments main aim
- conservatives feared defeat in the next election (loss of safe seats in Eastbourne to liberals in by-election 1990)
- unpopularity of poll tax
- resignation of cabinet ministers
What was John Major’s view on Europe?
Positive - wanted to see Britain ‘at the very heart of Europe’
When was Poll Tax abandoned?
Nov 1991
How did the Stock Market Crash affect Thatcher’s popularity?
1987 - crashed following the ‘big bang’.
The policies of chancellor Lawson resulted in a balance of payments problem.
Thatcher’s gov seen as unable to stabilise the economy.
What was the Bruges Speech?
Speech given by Thatcher in Bruges where she opposed any moves to transition the EEC into a federal Europe, as it would take powers away from member states.
What proportion of the public disliked Thatcher by the time she resigned?
60%
Why did Geoffrey Howe resign in 1990?
Disagreements over Europe - triggered by Thatcher saying Britain would never join the Euro.
Why did Nigel Lawson resign?
Concerned that Thatcher was listening to advice from her private advisors more than cabinet.
How did Major show he was a break from Thatcher?
- abolished poll tax
- more money spent on healthcare and education
- favoured a middle way on Europe
Examples of political sleaze in the Conservative Party?
- cash-for-questions affairs: Ian Greer had paid 2 conservative MPs to ask parliamentary questions on behalf of Harrods owner Mohamed Al-Fayed
- sex scandals: David Mellor had an affair with actress Antonia de Sancha and Major himself was rumoured to be having an affair
- homosexuality scandals: Jerry Hayes having an affair with an 18-year-old male conservative researcher
When did Britain join the ERM?
1990
What was Black Wednesday?
Financial crisis on September 16th 1992 where the UK government was forced to withdraw the sterling from the ERM.
What is the ERM?
Set up in 1979 and aimed to stabilise exchange rates between different countries in the EEC by limiting how much their value could change.
What were PFIs?
Public Finance Initiatives - aimed to create ‘public-private partnerships’ where private firms are contracted to manage public projects.
How many sex scandals were there in the Conservative Party?
More than a dozen
How much did unemployment rise at the start of the 90s?
1.6m in 1991 to 2.6m in 1992
What were the political consequences of Black Wednesday?
- humiliating for Major’s government
- lost their reputation for economic competence
- lost press support
- lost the 1997 election
What were the positive economic impacts of Black Wednesday?
- interest rates could be lowers helping businesses to build and invest
- cheaper pound made exports less expensive
- unemployment fell
- consumer spending rose
What were the negative economic impacts of Black Wednesday?
- interest rates initially very high (15%)
- house prices rose
What was the Citizen’s Charter?
1991 - aimed to redefine the relationship between citizens and public services, with an increased emphasis on citizens as consumers.
Why did the Conservative Party remain divides under Major?
- growing euroscepticism
- moderate conservatives did not want further radical social policies or privatisation
- some on the right feared a move away from Thatcherism
- major was unable to quieten criticism (referred to his own cabinet as ‘bastards’)
When did Major face a leadership challenge and who was it against?
1995 against John Redwood
What did the government raise interest rates to during Black Wednesday?
15%
Examples of continued privatisation:
- coal industry in 1994
- railways in 1996