Economics and politics 1979-87 Flashcards
What was rate capping and when was it
Upper limit on tax demanded by the local authority 1984
It was a response to local left-wing governments spending too much and raising taxes too much
What were 2 examples of Tory revolts
‘wets’ such as Heath opposed Thatcher’s poll tax and stance on Europe
The 1986 Westland affair- Hestletine resigned over squabble over who would take over the Westland helicopter company
Income tax changes 1979-80
Top rate down from 83p-60p
Lower rate down from 33p to 30p
Vat changes 1979-80
Up to 15%
Public spending reductions 1979-80
reduced by £4bn
Interest rates 1979-80
14%
Inflation and unemployment 1979-80
15%
2m unemployed
1981 tax increases
petrol tax 20p
Spending cuts 1981
£3,500m
GDP 1981
2.5% fall
1982 tax cuts
£1.3bn ‘given away’
What was privatised 1982
Amersham International
Deregulation 1982
‘Fair wages’ resolution abandoned
Inflation 1982
20%
Unemployment 1982
3m
What did the 1984 TU act do
Required ballots for the use of funds
How did the government manage to avoid the repercussions of the miners’ strike
stockpiled coal
got cheap imports from Europe
When and how much was the TGWU fined
200k
1984
How did the police deal with strikes
roadblocks and violence
What were Scharghill’s mistakes during the strike
Failure to ballot
Split in Nottinghamshire miners- UDM formed
Turned down a comprimise
Results of the strike
Fewer than 5,000 miners in Wales by 1989 vs 250,000 previously
3,000 in Scotland and LancashireKinnock distanced himself from NUM
Which act promoted the sale of Council houses
1980 Housing Act
How many had bought council houses by 1984
800,000
Social house building by 1983
down 50%
Impact of council house sales on children
number of homeless children doubled by 1990
When were the inner city riots
1981
How many were arrested during the inner city riots
2,000
2/3 under 20 years old
What was the Scarman report
highlighted the social and economic difficulties in the inner cities
Concluded institutional racism didn’t exist in the met
Why was the YTS introduced
40% f the unemployed were under 25
50% of school leavers trained
Problems with the youth training scheme
could be exploited
only paid £30/wk
What was the reaction when the government threatened to make the YTS compulsory in 1985
protests e.g 30,000 in Liverpool
What was the unpopular act which made the promotion of homosexuality illegal in schools
section 28
Example of a march for jobs
1981 protest outside the GLC
Examples of satirical magazines/ newspapers
spitting image and private eye
Who criticised Thatcher’s handling of the strikes
Bishop of Durham
When was the Greenham women CND protest
1979
Which event prompted environmental protests
1986 Chernobyl
When was the 14 mile human chain to protest cruise missiles
1983
Who was part of the SDP when it formed
Jenkins, Williams, Owen, Rodgers
Why did the SDP form
1981 Wembley conference saw Labour embrace more far-left policies
Disagreement on Europe
How many Labour MPs joined SDP
10
How many members did SDP gain within the first few weeks
50,000
What % of the electorate supported the SDP in 1981
45%
1983 elextion results for SDP
25% popular vote
23 seats
Conservative majority 1983
142
What was the ‘longest suicide note in history’
Labour’s 1983 manifesto
Causes of Labour’s shift to the left
dissatisfaction with 1964 and 1974 governments
Younger membership who were more differential to senior figures
Rise of Benn
Militant Tendency could influence local politics
Who won depity leadership in 1980
Healey
What were the constitutional changes to the Labour party
The l-w committee of inquiry recommended new constitutional procedures
which reduced the power of the parliamentary labour partty
so left-wing local politicians could have more power
It required an electoral college to elect the leader and compulsory reselection of all candidates (so could kick out the right)
What did Labour’s 1983 manifesto involve
NATO and EEC hostility
Nuclear defence hostility
Committment to mass nationalisation
Reinforcing the power of the unions
When did Kinnock become leader
1983
How did Kinnock modernise the party
Abandoned aspects of the 1983 manifesto
Criticised Hatton, Livingstone and Scarghill
Expelled Trotskyites
successes of privitisation
each sale was a fresh source of income
Increased competition
showed Thatcher was true to her word
when was the big bang
1986
trade increase after the big bang
from $4.5bn to $7.4bn per week
how many millionaires did the big bang create
1,500
positive impact of the big bang
made ordinary people shareholders and created significant wealth
How much was lost due to underpricing when BT was sold
£3bn
what did Macmillan describe privitisation as
selling off the family silver
What were negatives of the Big Bang
caused overcapacity
Banks overspent e.g Vickers da Costa
negatives of privatisation
Increase in inequality as shareholders became very rich so increased wealth inequality
had to spend lots of money creating regulatory bodies
social successes of privatisation
increased competition theoretically caused better services
what % disapproved of water privatisation in 1990
83%
How much was made from the sale of British Petroleum in 1979
£1.76bn
How many foreign owned firms were there within a year of the big bang
700
How many daily applications in the first year after RTB
1,000
how many houses sold within 2yrs after RTB
107,000
Positives of RTB
new homeowning class
wealth transfer
what discount on houses were people given for RTB
33-50%
negatives of RTB
housing shortage long-term
pressure on councils
