causes of Thatcher's resignation

Question 1

what was the state of the economy by 1990?

Answer 1

-lawson’s budget had caused a boom
BUT this caused…
-balance of payments problems
-interest rates having to be increased to manage inflation (which was at 10.9%)
-early stages of recession by 1990
-unemployment had increased
-cost of living had sharply increased

Question 2

how did the poll tax damage her position?

Answer 2

-was a highly controversial tax that disadvantaged lower income families and multi-generational households
-in some areas 30% of people didn’t pay it
-was extremely unpopular, with many anti-poll tax demonstrations e.g. in trafalgar square where 200,000 attended
-police couldn’t enforce the tax effectively
-thatcher’s personal determination to continue the policy led to approval ratings dropping, and labour overtaking the tories in the opinion polls
-it was deeply unpopular with most of her cabinet which caused divisions

Question 3

how did the eastbourne by-election damage Thatcher?

Answer 3

-october 1990
-this by-election saw a conservative safe-seat being lost to the lib dems
-this led to increased concerns that the conservatives could lose the next election under Thatcher’s leadership

Question 4

how did Thatcher’s relationship with her cabinet deteriorate?

Answer 4

-she had an increasingly dominant leadership style
-she became a presidential PM, injecting herself into global politics
-she was unwilling to delegate and had a tendency to micromangae
-led to resignation of key ministers which damaged the credibility of her gov.

Question 5

examples of key government ministers who resigned late into Thatcher’s premiership:

Answer 5

1. michael heseltine:
   -was secretary of state for defence
   -he had become thatcher’s biggest critic
   -resigned over westland affair
2. Nigel Lawson
   -chancellor
   -resigned over poll tax which he staunchly opposed
   -big blow to thatcher
3. geoffrey howe
   -deputy PM
   -resigned over Thatcher’s view of europe (he was a europhlie)

Question 6

describe disagreements over Europe :

Answer 6

-Thatcher hated Delors (the president of the EU) and accused him of being a tyrant
-she was concerned that the EU was becoming a ‘federalist super state run by unelected and unaccountable bureaucrats’
-she strongly resisted further european integration e.g. she opposed adopting the euro
-famous ‘no! no! no!’ speech

Question 7

describe the significance of Howe’s resignation speech:

Answer 7

-he heavily criticised Thatcher’s attitude to europe
-it exposed cabinet weaknesses
-it was very humilitaing for Thatcher
-it participated leadership challenges

Question 8

describe leadership challenges Thatcher faced:

Answer 8

1. Meyer, 1989
   -Thatcher won clearly BUT 60 MPs didn’t support her
2. Heseltine, Oct 1990
   -labelled a ‘stalking horse’ - this challenge led to gained momentum for Thatcher’s resignation
   -Thatcher got 54.8% of vote, Heseltine got 40.9%
   -thatcher failed to achieve enough votes in the first ballot (rule is that they have to receive 15% more of the vote) which led to Thatcher resigning before it went to a second ballot