Conservatives Under Major 1990-1997 Flashcards
What were Major’s moves as Chancellor of the Exchequer?
- Oct 1990
- persuaded Thatcher to abandon long-standing opposition to EMS
- Britain’s inflation at time 3x that of Germany (had reason)
- Short term triumph long term disaster
- New savings scheme - TESSA - popular
Describe Major’s cabinet
- Exchequer: Norman Lamont
- Foreign: Douglas Hurd
- no women
Towards General Election
What were early problems for Major + why was it a likely defeat?
- Recession continued
- By election results, opinion polls the European Parliament elections (1989) - pointed to C defeat in 1992
- Conservatives lost 900 council seats in local election May 1991
- April Opinion poll: L:41%, C: 35%, Lib dem: 20%
Towards General Election
Economic problems?
- Unemployment grew in year 1991 from 1.9mil to 2.6 mil
- Interest rate cut but housing market depressed
- Business and consumer confidence remained poor
- record number of business failures + flat repossessions
- trade deficit fell but Britain’s trade balance remained in red
- inflation fell (higher than other industrialised nations)
Towards General Election
What was the State of Labour?
- Election campaign positive + concentrated on moderation
- Neil Kinnock enthusiastic and effective campaigner
- Could not shake off old Labour image
- “shadow budget” - drew attention to likelihood of tax increases
- this and press undermined Labour’s position
Towards General Election
How did the British Electoral System influence Conservative win?
- Of the 651 MPs elected in 1992, 170 had majorities of 10% or less
- Conservatives won seats more “cheaply” in terms of votes than other parties
- organisation of system helped them
- 250,000 poll tax evaders likely harmed labour not C
Towards General Election
How did the press influence the conservative win of election?
- Out of National daily papers 7/11 backed C only 3 L
- C supporting papers accounted for 67% of newspaper sales
- 3 tabloids vigorously campaigned for C: Sun, Daily Mail and Daily express
Towards General Election
How did the Tory election campaign influence their win?
- main issue: economy, taxation and welfare
- C attacked labour’s spending plans claiming they would lead to higher inflation and taxation
- Rhetoric of classless society and Citizens Charter - which obliged to NHS, British Rail and other public bodies, sought to win wavering SDP/ Lib dem voters
Towards General Election
Describe Major’s win
- narrow but unexpected victory: 42% vs L: 35%
- Labour still tainted with extremist view had in early 1980s
- L failed to secure more than half working class vote
After the election nothing went right for Major:
Briefly describe this
- Controversy over Maastricht Treaty divided CP: Had to come to understanding with Ulter Unionists to protect gov majority
- Economy remained depressed
- housing market remained stagnant
- Problems with ERM
How were taxation levels under Major?
- Higher by 1990s than had been in 1970s
- Britain’s long term economic decline not halted
Why did Black wednesday happen?
- Unsustainable position of Britain in ERM
- Required Britain to maintain fixed rate of exchange (2.95 German marks to pound)
- Sep 1992 British currency came under pressure
- had to devalue or face even greater collapse of output
What was Black Wednesday?
- Instead of devaluing ERM, spent Britain’s currency reserves against wave of selling that ended Black Wednesday - 16 Sep 1993
- Lamont announced decision to leave on TV
- left ERM with value of sterling down by 20%
- £5 bill wasted trying to stay in ERM
- interest rates increased dramatically
- loss of credibility of gov
What were the effects of Black Wednesday on the Conservatives and Major?
- Within relatively short time - economy stabilised + leaving ERM had many benefits
- Political consequence - disastrous
- steep drop for support for C in opinion polls
- JM authority weakened
- criticised by newspapers
What was the effect of Black Wednesday on the economy?
- leaving prevented Britain from having to keep high interest rates
- thus exchange rate decreased
- Unemployment rates slowed down; housing market picked up
- American economy was coming out of recession - world trade expanding
- British economy benefited from impact of financial deregulation
What was the economic situation by 1997?
- Mostly positive:
- unemployment down
- productivity up (not much)
- Car ownership increased
- House prices rose - negative equity thing of past
-Business in support of gov policies - people reluctant to give major credit for this
What were the political problems under Major?
- Gov rep never recovered after withdrawal of ERM and Major’s government lost every by-election it fought
- May 1983 Tories lost 452 local council seats
- 1995: 1,800 council seats lost
- eventually C lost HoC majority
- By 1996 Major forced to rely on support from Ulster Unionists for majority which ruined plans for dealing with NI
What was the relationship with the miners like under Major?
- continued to close pits and cut jobs
- Political storm
- Felt that Hesseltine was going back on repeated assurances given to UDM: pits would be open -loyal UDM pits closed
- A privatised electricity industry unable to buy British coal
- Plan went ahead and sold remaining industry to private company - undervalued
- June 1993: workforce down to 44,000, less than half 1990 level
What kind of stance was Major in relation to Thatcher?
- not centrist as expected
- described by historian “Thatcherism on autopilot”
- even things SHE wouldn’t do were done
What did Major do with NHS?
- further reorganised to create an “internal market”
- led to widespread complaints of burgeoning bureaucracy and inequality
- fund holding GPs in control of own budgets seemed to get a better deal for their pateints than non-fund holding collegues
What did Major do with Education?
- Reduction of power of the local education authorities by giving schools powers of management
- introduction of national testing and performance league tables
- the revision of training of teachers
- imposition of a system of national inspection (OFSTED)
- All aroused opposition within teaching profession
What was Major’s attitude to privitisation?
- continued
- sold capital assets due to severe pressure on public finances
- British rail and nuclear power industry
- coal industry in 1994
- railways 1996
- Private Finance Initiative (PFI) introduced
- public-private partnerships
-private companies would fund infrastructure improvements that State would pay for over length of contract
- public-private partnerships
What was the Citizens Charter?
- introduced 1991
- attempt to give public sector users more power over quality of services they received by providing info about standards they should expect
(e.g education more testing + schools publish results) - problem not all effective
- e.g the cones hotline - motorists could call if motorway lanes closed without any sign of roadworks-pointless
What was Major’s attitude to Civil liberties?
- Civil liberties suffered sustained attack under Michael Howard - Home sec
- restricted right of free assembly
- gave police draconian powers to control raves and travellers
- abolished right to silence
- obliged courts to impose fixed sentence for certain crimes
- drove up prison population massively: increased overcrowding and brutality
What was the controversy surrounding Tory Party funding?
- Asil Nadir, Turkish businessman charged with fraud in london, fled
- Lord McAlpine, Tory Treasurer, revealed he contributed £440,000
- and that party had taken money from Hong Kong nationals and American businessmen
- accusations about money from Saudi Arabia
- Resulted in Qs regarding possible favours to individuals and potential influence on Tory policy
How do polls show how rubbish Major was?
- July 1993: Gallup poll, published in Telegraph revealed conservatives most unpopular gov since 1938
- and Major most unpopular PM
What was the “back to basics” movement?
What scandal followed this?
- Autumn 1993: designed to emphasise core values in family, education and morality
- rewarded by string of tabloid revelations about the sexual indiscretions of own ministers
- 1994: problem
- 8 C MPs and two other prominent C embarrassed Major by exposure of their adultery, corruption + bizarre sexual practices: resignation + suicide followed
What were other scandals the Conservative gov was implicated in?
- 1993/94 Scott Enquiry disclosed instances of illegal arms dealing with Iraq - further embarrassed
- Several C MPs implicated
- 1996 it was revealed a n. of MPs selling political services and receiving assorted “favours” from business interests
- called “cash for questions” scandal
What was Major’s relationship with Eurosceptics?
- Euro-sceptics gained upper hand in party
- Major forced to reduce pro-Euro policies leaving Britain more isolated within EU
- apparent success of Masstricht quickly evaporated
- Major provoked leadership challenge in 1995 in attempt to reassert control of party
- beat redwood but not respect
- Conservatives appeared utterly divided party led by a man with no authority
What was relations like with NI after 1985
- Anglo-Irish Agreement deteriorated and south became dismayed by British decision to apply brake to reform process
- disagreed on human rights issues:
- Stalker affair
- Birmingham six
- Guildford Four
- Maguire Family
What did the Irish republicans do in 1980s?
- Gerry Adams became president of Sinn Fein in 1983
- Began to see advantages to using “ballot box and the gun” as a twin-track strategy
- attempting to penetrate political system whilst IRA rearming themselves with arsenal so large that it converted them into one of the worlds best equipped underground organisations
How were the IRA helped by Libya?
- Libyan ruler, Colonel Gaddafi provided weapons for IRA
- 4 shipments of arms
- 1000 rifles
- Semtex plastics explosives
- Heavy machine guns
- SAM-7 missiles
- Anti Aircraft guns
- authorities new nothing, worst intelligence lapse for decades
How did the IRA become more violent?
- 1987 the IRA bombed Remembrance Day service in Enniskillen, killing 11: shocked world
- 1991 IRA exploded a substantial motar bomb near PM
- 1992: IRA bombed the City which inflicted more financial damage than all of the other 10,000 bombs which had gone off in NI
- Baltic Exchange bombing caused more than £700 million in damage
- saw the potential of IRA seriously damaging entire British economy
What was the 1990s dominated by in terms of norther ireland - to sort problem?
- The Peace Process 1993-1994
- Starting point was the Anglo-Irish Agreement
How was secret negotiations with Sinn Fein an important aspect of Peace Process?
- web of secret talks between Sinn Fein, church and state made this possible
- Gerry Adams (Sinn Fein) had been secretly meeting with John Hume (SDLP leader); leaders of Irish church; British gov
- breaching general mainstream rule
- secret communications came to be known as the back channel
- 1993: a message a week
Importance of John Hume
-working class catholic background
- 1990s most influential nationalist politician in NI
- challenged traditional view that root of problem Britain
How did John Major play an important role in the peace process?
- took risks in back channel
- 1992 only had slender majority in Commons
- had many people against him
- parliamentary arithmetic meant that 9 Ulster Unionist MPs great value to Major (back door could have jepardised this)
- Major convinced that NI needed serious and sustained attention - unlike other PMs
How was John Hume’s deceleration of peace important to the peace process?
- 1991 Hume wrote a draft declaration, based on 1985 Hillsborough Agreement
- aim was to demonstrate that Britain was not standing in way of Irish unity
- persuade republicans to halt attempt to unite Ireland by violence
- showed document Haughey, Reynolds, Adams + major
- By 1993 Hume and Adams announced publicly that they made progress + ready to bring report to Dublin
What was the reaction to John Hume’s deceleration of peace - negative?
- 1993 public announcement from Hume and Adams that they were ready to put report to Dublin
- response violence
- Desperate IRA attempts to assassinate leading loyalists
- Loyalist gunmen went on rampage in retaliation
- increased desire for peace
Describe the fruition of the peace agreement what was passed?
- The December 1993 Downing Street Declaration
- intertwined concepts of self-determination and consent which Hume and Adams spent so much time
- In Feb 1994 the US Clinton administration dropped the long-standing ban on Adams entering the US
Describe the IRA ceasefire + return to terrorism
- 1994 came the ceasefire announcement
- after 25 years of conflict and 3000 deaths
- IRA called it a halt
- got impatient and went back to violent methods
- Bomb attacks damaged the financial district at Canary Wharf and destroyed centre of Manchester in 1996
- peace process continued
Conservative Divisions:
What were divisions like under Thatcher?
- By last years in her premiership - divisions apparent
- Thatcher’s use of Professor Alan Walters as economic adviser infuriated Chancellor Nigel Lawson who resigned in 1989
- Thatcher also alienated Geoffrey Howe by moving him from Foreign Office to lesser post and his resignation speech triggered fall of Thatcher
Conservative Divisions:
What were divisions like under Major?
- Divisions in CP worsened
- Right wingers pushed for more radical social policies
- Politicians with leadership ambitions saw chance to advance claims
- Eurosceptics saw opening to push gov out EU
- Press speculations about leadership challenges
- Comment from R-W press hostile
- By summer 1995 Major called for leadership election so he could be re-elected to own job
Conservative Divisions:
How did the re-election contest go for Major?
- 1995
- Main challenger was John Redwood who was backed by Thatcherites and Eurosceptics
- Major promised Heseltine deputy leadership if he won
- result of first ballot decisive: 218 for Major and 89 for Redwood
- small majority
- attitude of press remained hostile
- Criticised by Blair and Thatcher
Conservative Divisions
Describe the 1997 election?
- background of sleaze and reputation of weak leader
- Major called general election for May 1997
- Sun declared in favour of Blair government
- C propaganda lacked originality and flair
- results:
Labour: 419 seats
Conservatives: 165 seats
Liberals: 46 seats - Major resigned as party leader
Describe resignation of Chancellor of Exchequer
- 1993 Chancellor Lamont’s proposal to extend VAT to domestic fuel
- provoked widespread anger: forced to resign in May
- replaced by kenneth clark