Chapter 14 (4) Flashcards
Successes of reducing inflation
-Inflation did fall from 22% to 5% by 1983
-Indirect taxation increased- duty on petrol 20p up per gallon
-Interest rates were raised to 17% in 1979
Failures of reducing inflation
-1980 economy was in recession
-Inflation was above 15% by 1980
-Stagflation was back as inflation hit 22% in May 1979
Successes of Support the private sector
-More business opportunities resulting from outsourcing at local government level
-Enterprise allowance scheme (1981) gave a guaranteed income of £40 a week for unemployed people who set up their own businesses
-BP was privatised in 1979 and British Aerospace in 1980
-Outsourcing became more common
-A cut in the top rate of income tax from 83% to 60%
Failures of Support of the private sector
-Interest rates rose to 17% in 1979
-Companies began to cut staff
-Interest rates had to be continually increased to combat tax cuts
-Bail outs occurred as Joseph didn’t want unemployment to rise. e.g British Leyland was given £990million to stop liquidation
Failures to reduce government spending
-1981 budget (Most unpopular budget in history) with reduced borrowing, local government budgets were cut, and benefits were frozen
-Public spending as a proportion jumped from 44.8% to 47.3% between 1980-1981
-Government borrowing continued to rise despite efforts to cut it
-January 1981, it was revealed that government borrowing was due to hit £14.5billion
Successes in job creation
-Youth unemployment schemes were created
-Employment in the south was high
-Enterprise allowance scheme. £40 a week
-Wages in the public sector went up by 25% as recommended by the Clegg Commission
Failures of Job Creation
-Unemployment was increasing as it went above 2 million
-By 1983, it was 3 million (13.5% of the workforce)
-In Liverpool, 25% were unemploymed
-In Northern Ireland, 20% were unemployed
‘Sus’ laws
Allowed stop and search of any individual who was deemed suspicious
Was mainly used to target young black men
This caused poor relations between Ethnic minorities and police
Fire in New Cross at a 16 year old birthday party which killed 13 black children, no condolences. Compared to NI fire which killed white teens, Thatcher travelled across to pay her respects
‘13 dead and nothing said’- Caused a peaceful march of 10,000 people
‘Day the Blacks Ran Riot’- Sun which caused more racist tensions
Swamp 81
April 1981
In Brixton to try to control riots and protests
279 police were injured
45 members of the public injured
82 arrested
28 buildings torched
‘Swamp’ links to her intro speech into Downing street where she holds immigrants in negative light by saying they are swamping Britain
Riots
July 1981
Occurred in Bristol and Toxteth as race riots
Occurred in Moss side, Birmingham, Blackburn, Bradford, Hull, Leeds, Leicester, Preston, and Wolverhampton for youth disturbances due to unemployment
Government commissioned a report surrounding the race riots but ignored all the proposed changes and tightened police regulation anywau
