Britain: Fall of Thatcher

Question 1

Economic

Answer 1

. Stock market crash 1987
. Followed ‘Big Bang’, deregulation of the City 1986
. Chancellor Lawson’s policies, esp 1988 budget led to expanding economy in ‘Lawson boom’
. Resulted in balance of payments problem
. 1990: inflation 10.9%; they’d set low inf as a key obj

Question 2

Political

Answer 2

. Loss of safe seat of Eastbourne to Liberal in Oct 1990 by-election - could lose anywhere
. Unpopular due to economy + intro of poll tax
. After poll tax riot March 1990, gov’s popularity in opinion polls fell sharply
. Thatcher out of touch with the people

Question 3

Cons divisions

Answer 3

• Over economic policies, Europe, Thatcher’s style
  . 1990 Labour recovery under Kinnock + Smith exacerbated these divisions
  . Labour led opinion polls in 1990

Question 4

Geoffrey Howe’s Resignation

Answer 4

. A catalyst
. Howe’s resignation speech galvanised Heseltine, a long standing critic of Thatcher since Westland
. He announced leadership challenge
. Thatcher failed to win first ballot and resigned
. She got 204 votes against Heseltine’s 152: not sufficient + second ballot needed
. “treachery with a smile on its face”