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British History - Topic 5 > Fall of Thatcher 1987-1990 > Flashcards

Fall of Thatcher 1987-1990 Flashcards

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1
Q

When was the fall of Thatcher?

A

1987-1990

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2
Q

Who was Chancellor?

A

Nigel Lawson (1983-1990)
John Mayor (1990)

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3
Q

What did Lawson do with Taxation?

A

continued with vigourous supply-side policy of tax-cutting
- reached climax in March 1988 budget
- reduced the rate of income tax of 40% for the rich and 25% for all the other income taxpayers

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4
Q

What did Lawson do with Interest Rates and Inflation?

A
  • Consumer credit and a spending boom fuelled inflation, not government borrowing
  • Lawson’s chosen response was the most politically damaging he could have chosen
  • successive increases in interest rates, to reach a minimum lending rate of 15% by October 1989
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5
Q

What did Lawson do with privitisation?

A
  • After 1987 the privatisation agenda was renewed
  • this time involved British Steel, water and electricity
  • relative popular policy of privatisation did not meet with as much enthusiasm regarding the electricity and water supply industries
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6
Q

What were the negatives of Lawson’s policy in relation to inflation?

A
  • worst of all, inflation rose to 8.3% by June 1989 - govs main boast seemed undone
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7
Q

What happened with the Stock market?

A
  • Huge stock market crash in Oct 1987
  • nearly £102 billion wiped off City stock values
  • many thousand of small savers saw funds decimated
  • up to 1990s - values not recovered
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8
Q

What happened with Oil?

A
  • Non oil imports had been steadily rising - 1987-88
  • deficit 1989 nearly £20 billion - largest figure on record
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9
Q

Concerns with privitisation?

A

Some felt Thatcher denationalising for the sake of it, without making a case on managerial or cost grounds
- HOWEVER - privatisation bred regulation
- many regulatory bodies developed
- OFTEL, OFGAS, OFWAT

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10
Q

Division between Thatcher and Chancellor

A
  • basically accused him of starting inflationary spiral
  • Lawson seeing benefits in European monetary system (EMS) as stabilising factor
  • 1988 - Thatcher spoke against political and economic union with Europe
  • Lawson threatened to resign if she didn’t concede that one day would join REM
  • L resigned over continued arguments in 1989
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11
Q

What about Mayors budget?

A
  • reasonably well received but rapidly rising inflation and interest rates at 15% made the gov deeply unpopular with mortgage holders
  • slow down in industrial production and rise in unemployment
  • recession
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12
Q

What was Thatcher’s housing policy? - positive

A
  • from 1979 - promoted “property owning democracy”
  • on back of gov subsidies - (right to by scheme + tax relief on mortgage interest)
  • house prices shot up + home ownership increased 54%-65% of population
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13
Q

How did Thatchers housing policy go wrong?

A
  • from 1979 - “property ladder” slipped
  • interest rates soared, house prices surped
  • 2 million households found themselves stuck with houses worth less than they had borrowed to pay for them
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14
Q

What did Thatcher do with Education? - act

A
  • passed the 1988 Education Reform Act
  • laid down national curriculum - all students must take maths, English and science as core subjects
  • religious studies compulsory
  • testing and assessment of all pupils ages 7,11, 14 and 16 introduced
  • parental choice increased
  • control of school budgets given to school heads
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15
Q

Interpretation of the education act?

A
  • david childs - development as a result of deep seated prejudice of conservatives against local education authorities and teachers (many labour)
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16
Q

Negatives of Education Act - conservative critics

A
  • By international standards, - schools continued to be underfunded
  • discipline in schools broken down thus academic failure (view of C critics)
  • more focused on what they believed to be poor teacher training, informal teaching styles and lack of attention to testing etc
  • these evils associated with comprehensive education
17
Q

Negatives of Education Act - leftist critics

A
  • blamed under funding of schools, - problem of immigrant children,
  • failure to ensure that more girls took science and
  • the imbalance and divisive nature of a system based on wealthy private schools
18
Q

Concerns with funding of schools

A
  • Student Grant frozen
  • loans offered as alternative
  • concern that students from less well off backgrounds discouraged from applying
19
Q

What was proposed in relation to health?

A
  • 1989
  • Kenneth Clarke - minister of health - introduced “market mechanism”
  • doctors have control over their own budget + doctors could contract out of NHS altogether
  • one of gov’s most strongly challenged ideas
20
Q

Problems regarding the state of the health service

A
  • britain spent less of health than any Western European country and US
  • nurses, doctors + staff felt underpaid and overworked
  • The BMA denounced government policy
  • massive rise in prescription charges over 1980s and dentists virtually private by 1990
21
Q

What was the poll tax?

A
  • intended to replace existing system of local rates
  • new poll tax meant everyone had to pay and not just householders
  • came into force 1990
22
Q

Why was the poll tax so unpopular?

A
  • the heavy burden would impose on working class families in urban areas
  • added enormously to government’s unpopularity
23
Q

What happened in response to the introduction of the poll tax?

A
  • immense protests all over England and Wales, many violent
  • Opposed by Labour; the alliance and nationalist parties
  • riot occurred in central London - march 1990
24
Q

Who instigated the poll tax riot?
What was the poll tax riot?

A
  • Nov 1989 - militant tendency set up the Anti Poll-Tax Federation
  • Huge demonstration planned to take place in Trafalgar Square
  • 200,000 maybe 250,000 showed up to demonstrations
  • surrounding streets choked by crowds
  • fighting and scuffles broke out
  • escalated into major riot
  • 5,000 people injured
  • many shop windows smashed + extensive looting
25
Q

How did the poll tax effect the conservative party?

A
  • following riot, some local Tory councillors resigned
  • labour achieved some by-election success
  • Public turned against Thatcher
  • Gov forced to withdraw poll tax in 1991
  • replaced by new council tax
26
Q

What were Thatchers political troubles within by elections?

A
  • 1989 Conservatives defeated in Glamorgan by-election - further by-election defeats follow
27
Q

What were the problems within Thatcher’s cabinet?

A
  • Lost loyal colleague Willie Whitelaw to ill health
  • Norman Tebbit fallen out with Thatcher and left gov for backbenchers
  • Leon Brittan taken up post in Brussels
  • Edwina Currie forced to resign
  • By early 1989 Mrs Thacther at odds with several colleagues
28
Q

What were Thatcher’s problem with Lawson + Biffen?

A
  • Quarrelled incessantly with Nigel Lawson
  • Joe Biffen - publicly criticised PM’s strident, dogmatic style
  • leader became more remote and isolated
  • doubt whether she would win next election (emphasised through situation with Europe)
29
Q

How was labour rising as opposition?

A
  • gaining credibility - threat to Tories
  • Kinnock established firm leadership of party
  • accepted mixed economy - moved away from far left and unilateralism, warmer espousal of Europe, need for union control and strong law and order
  • gained support
  • 1989 - led strongly in opinion polls
  • European election won 45 seats to Tories 32 - first defeat for Thatcher in 10 years
30
Q

What happened with Howe?

A
  • Geoffrey Howe - Foreign Office
  • incurred her wrath due to sympathy for EMU
  • Europe most embarrassing cause of weakness, Cabinet in dissaray
  • Thatcher’s antagonistic approach led to dramatic resignation of Howe with fierce assault of Thatcher’s style in his resignation speech to the house
31
Q

What was the stalking horse?

A
  • by end of 1989 Thatcher being challenged for leadership
  • Anthony Meyer agreed to be “stalking horse”
  • 33 MPs voted for him whilst 24 abstained
  • clear for Michael Heseltine to make a comeback he challenged for leadership
  • she won first ballot but clear that she lost the confidence of majority - withdrew from contest
  • second ballot won by John Major

British History - Topic 5 (5 decks)

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