Chapter 17 (5) Flashcards
Reasons behind Thatcher’s resignation
1) Management style due to the multiple resignations of Lawson (1989) , Howe (1990), and Heseltine (1986)
2) Europe as it caused the resignation of many ministers including Howe
3) Poll Tax as it caused a lack of support within the party due to MP’s wanting to keep their marginal constituencies
4) Economy as it caused Lawson’s resignation and inflation was on the rise
Major’s ’Honeymoon effect’
-Made a speech about Britain being ‘at the very heart of Europe’
-Had successes with the Gulf War in 1991 and kept the leaders of the opposition involved
-Removed the Poll Tax in 1991
-Able to consolidate the power issues post Thatcher
Major’s portrayal in the media 1990-92
-Spitting image created a grey puppet and presented him as extremely boring and sexist. Focus of the sketches were on him eating peas
-Satyrical jokes about his wife Norma and Norman Lamont his Chancellor
-The Secret Diary of John Major (aged 47 3/4) in private eye which characterised him as hopelessly naive and optimistic in a childish way
Who faced hostility from the hard right within the party?
Major
Major’s leadership was challenged by the Thatcherites.
What was the Thatcherites’ reaction to the removal of Thatcher?
Refused to come to terms with it
The Thatcherites were loyal to Thatcher and resisted changes after her departure.
What did Thatcher state about Major’s leadership?
‘There isn’t such thing as Majorism’
This reflects Thatcher’s disapproval of Major’s leadership style.
Who opposed Major’s leadership and why?
Heseltine; he felt it was a loss of power for himself
Heseltine’s opposition stemmed from personal political ambitions.
What was the attitude towards Major from those who felt betrayed?
Fierce determination for revenge
Some members believed Major had betrayed Thatcher, leading to animosity.
What was the opposition’s belief about Major’s suitability for leadership?
He was not the right fit and incapable
Critics claimed Major rose too quickly through the ranks.
What was the purpose of the ERM?
To stop inflation by pegging currencies to the Deutschmark (DM)
The Exchange Rate Mechanism (ERM) was intended to stabilize exchange rates and reduce inflation.
What major issue did Britain face with the ERM between 1990 and 1992?
Inability to respond to recession and depression
The ERM’s constraints limited economic policy flexibility during economic downturns.
What was the exchange rate at which the pound was pegged to the Deutschmark before Black Wednesday?
DM 2.95
This overvaluation contributed to the economic difficulties leading to Black Wednesday.
What happened on September 16, 1992?
Britain withdrew from the Exchange Rate Mechanism, known as Black Wednesday
This event marked a significant failure in economic policy under Major’s government.
How did the government attempt to maintain the pound’s value during the crisis?
By raising interest rates from 10% to 15% and buying pounds
These efforts were ultimately unsuccessful and highlighted the government’s struggles.
What was the immediate impact of Black Wednesday on Major’s government?
Hugely damaging to the government’s reputation
The event was seen as a humiliating defeat for the Bank of England and the government.
What effect did Black Wednesday have on the Conservative Party’s standing in opinion polls?
Labour’s rating increased by 15 points
The Conservatives, traditionally seen as the better party for economics, suffered a significant drop in popularity.
What were some long-term economic benefits following Black Wednesday?
Fall in annual inflation, decrease in unemployment, and growth in purchasing power
These outcomes led to an economic recovery and expansion of world trade.
What did some people refer to September 16, 1992, as, due to its eventual positive outcomes?
‘White Wednesday’
This term reflects the belief that exiting the ERM allowed for better management of the economy.
What economic policy did Major introduce to prevent another recession?
Unpopular taxation on heating
This policy was part of Major’s efforts to stabilize the economy following Black Wednesday.
True or False: The damage to Major’s party image was immediate and short-lived.
False
The damage to the party’s image was long-lasting, with lasting divisions occurring throughout the 1990s.
When was the National Lottery established?
1994
How much money has been given to projects across the UK from the National Lottery?
£9.2 billion
How many projects have benefited from the National Lottery funding?
More than 52,000 projects
What percentage of money spent on National Lottery games goes to the prize fund?
53%