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%
What percentage of money spent on National Lottery games goes to ‘good causes’?
25%
What is a common criticism of the National Lottery?
Some consider it a form of ‘stealth tax’
Fill in the blank: Of all money spent on National Lottery games, around _____ goes to the prize fund.
53%
Fill in the blank: The National Lottery was established as a _____ franchised national lottery.
state
True or False: The National Lottery has only funded a few projects since its establishment.
False
What educational reform was implemented in 1991?
SATS
SATS are standardized assessments in England.
When was the National Curriculum finalized and fully launched?
1997
The National Curriculum sets out the subjects and content to be taught in schools.
What was launched alongside the implementation of SATS to measure school performance?
League tables based on exam results
League tables provide a ranking of schools based on student performance.
What agency was created in 1994 to address teacher shortages?
The Teacher Training Agency
This agency aimed to improve the quality of teacher training.
What tax replaced the poll tax?
Council tax
Council tax is based on the value of the property occupied.
What was the cost of scrapping the Poll Tax?
£1.5 billion
The Poll Tax was deemed essential to replace despite its high cost.
The current system of council tax is almost the same as that introduced by whom?
Major in 1991
This refers to John Major, the British Prime Minister at the time.
Fill in the blank: The Teacher Training Agency was created to address a shortage in _______.
teachers
True or False: The National Curriculum was implemented before SATS.
False
SATS were implemented in 1991, while the National Curriculum was finalized in 1997.
What was the declaration made by Home Secretary Michael Howard in 1993 regarding prison?
‘Prison works’
What reforms did Michael Howard introduce to the justice system?
Increased arrests, prosecutions, and convictions
Included new Secure Training Centres for children and mandatory minimum sentences for repeat offenders.
What was the average prison population in the UK in 1993?
44,500
What was the average prison population in the UK by 1997?
61,100
What are Private Finance Initiatives (PFIs)?
Arrangements where a private company handles up-front costs for government projects
The government pays the private company over the long term.
What is the payment structure under a PFI?
‘No service, no fee’ basis
How long are most PFI contracts typically?
25-30 years
What sectors have PFIs been used to fund?
- Hospitals
- Schools
- Roads
- Prisons
- Military equipment
What criticism did PFIs face?
‘Privatisation through the back door’ and poor value for money for taxpayers
What did the National Audit Office find in January 2018 regarding PFIs?
The UK incurred many billions of pounds in extra costs for no clear benefit
What was the purpose of the Citizen’s Charter introduced in 1991?
To give public service users more power over service quality
What methods were used to improve public services under the Citizen’s Charter?
- League tables
- Questionnaires
- Inspections
- Targets
- ‘Charter Mark’ awards
What criticism did the Citizen’s Charter receive regarding its implementation?
It invited ‘hoop jumping’ and ‘target practice’ rather than genuine service improvement
How did Marr describe the level of bureaucracy resulting from the Citizen’s Charter?
‘Homegrown superstate’
What was the purpose of the Cones Hotline established in 1992?
To allow members of the public to enquire about roadworks and report traffic cones deployed without reason.
The hotline was staffed by a single person and was criticized for being a waste of government resources.
When was the Cones Hotline closed?
September 1995.
The hotline faced significant criticism and was viewed as lacking ambition.
In what year was the coal industry privatised in the UK?
This was part of a larger trend of privatization occurring in the UK during the 1990s.
What was the outcome of the railway privatization in 1996?
It was disastrous, leading to higher prices and no improvement in services.
The railways were split into franchises and a company called Railtrack managed the infrastructure.
How did railway privatization affect travel across Britain?
Required dealing with multiple companies for travel.
This fragmentation resulted in a more expensive and less efficient service.
What nickname was given to the railway privatization due to its impact?
The poll tax on wheels.
This nickname reflected public dissatisfaction with the costs and service quality.
What happened to less profitable railway routes post-privatization?
They were cut and investment slowed.
This negatively impacted the overall service and accessibility.
What occurred in Nottinghamshire during the railway privatization?
Pits closures continued, despite local opposition.
Heseltine was forced to U-turn, but ultimately, 31 closures went ahead.
What was the outcome of attempts to privatise the Post Office?
The privatization did not go ahead.
This reflects the complexities and challenges of privatizing public services.
What is BSE commonly known as?
Mad Cow Disease.
BSE was identified in the mid-1980s but was recognized as a human threat in the mid-1990s.
What practice contributed to the spread of BSE in cattle?
Feeding cows mashed up cow offal in their feed.
This practice was linked to the outbreak of the disease.
What actions were taken by farmers regarding BSE in the mid-1990s?
Farmers were instructed to change cow feed and destroy infected cattle.
The government provided millions in compensation for farmers affected by the disease.
How many deaths were caused by a disease similar to BSE in humans?
8 deaths from CJD (Creutzfeldt-Jakob Disease).
CJD was alarming as it was associated with BSE.
What significant action did the EU take in response to BSE?
Banned the sale of British beef and extended the ban to exports outside the EU.
This was a major blow to the British beef industry.
What measure was taken regarding cows over 30 months old during the BSE crisis?
All cows over 30 months were slaughtered.
This was part of the effort to control the spread of BSE.
What was a major criticism of the government and industry during the BSE crisis?
They acted too slowly.
This slow response contributed to the severity of the crisis.
