factors contributing to thatcher's decline Flashcards
what were the four main factors that contributed to her resignation in november 1990
poll tax impact
economic decline
cabinet divisions regarding attitude towards europe
increasing personal isolation and unpopularity
why did thatcher implement poll tax
government finance act of 1988
she thought there would be more interest in local politics if more people paid taxes
it was trialled in scotland where millions of people refused to pay it and riots in england the day before implementation demonstrated how unwise it was as a decision
impact of poll tax
there was a violent riot in trafalgar square where 400 policemen where hurt
despite her cabinets warning she followed through, which suggested her govt was increasingly dictatorial and alienating her supporters
how was the economy mismanaged by lawson
as a result of 1987 stock market crash he reduced income rate taxes. this lead to a consumer boom and increase in prices. led to inflation at 8.3% in june 1989
it raised to 15% by october 1989 when he raised interest rates. thatchers most loyal supporters the home owners were now paying heavy for the houses they were encouraged to buy
why was there divisions over europe
thatcher accepted the single european act of 1986 but quickly regretted it; it required members to work towards political union which she did not want.
how did the ERM divide the party further
foreign exchange rate secretary howe wanted to join the erm but thatcher did not. despite being a loyalist she demoted him in 1989 and gave him a meaningless title as deputy prime minister
lawson then resigned as chancellor as a result of her actions
she alienated herself and lost authority as she isolated herself from two important allies
why was thatcher pressured to resign in 1990
many tory MPs feared that conservative would lose if thatcher remained in charge. she was challenged for her role where many MPs voted against her.
Howe triggered her fall despite being one of her closest allies; he endured years of bullying from her and disliked her anti-european speeches
