fall of thatcher and rise of major Flashcards
stock market issues
1987 crashed following the deregulation of the City in 1986
lawson (chancellor) policies
especially 1988 budget
let to rapid expansion of the economy - ‘lawson boom’
resulted in balance of payments issue
inflation
1990 - 10.9%
higher than 1980
problem for a government that had set its key economic objective as low inflation
loss of eastbourne
tory ultra safe seat Eastbourne was lost to the Liberals in 1990 by-election
poll tax
made conservatives V unpopular
thatcher advised to drop it, but did not
poll tax riot in March 1990
conservative divisions
over Europe, economic policies and thatcher’s leadership style
labour party at the time
making a recovery under Neil Kinnock and John Smith
role of geoffrey howe
always loyal to thatcher
been in cabinet since 1979
always sidelined by thatcher
was not told about joining the ERM
resigned in 1990 over europe disputes
resignation speech designed to damage thatcher
indirectly called for her to be removed from office
micheal hestletine
europhile
very charasmatic
very popular - thatcher had to bring into government
unofficial minister for Liverpool - lots of effort into improving the city
nigel lawson
chancellor
very arrogant
tension between thatcher and lawson over Europe
thatcher appointed her own economic advisor
westland affair
1986
hestletine and thatcher public dispute
over westland helicopters - UK last helicopter manufacturer
hestletine - europe integration
thatcher - american integration
suspicion thatcher lied to HOC
leadership contest
hestletine challenged thatcher 1990
thatcher fail to win 1st ballot
thatcher persuaded to withdraw from 2nd round
announced her resignation 22nd nov
thatcher legacy
affected development of labour party - new labour
housing boom in south
economic policies consequence took place
view on thatcher
major was a thatcherite
previous positions
held many ministerial positions
BUT did not hold them long enough to make a lasting impressions
party divisions under major
he wanted to unify the party
ongoing hostility to hestletine
people wanted to take revenge against people who had ‘betrayed maggie’
major and foreign affairs
successful conclusion of 1st gulf war in 1991
wanted to see britain at the ‘heart of europe’
poll tax
scrapping the tax would divide the party
1991 abandoned for new council tax
allowed major to get away from an unpopular policy
opinion polls 1992
conservative - 29%
labour - 41%
swung back to conservatives at the end of the campaign
attitudes in 1992 campaign
conservative - upbeat and optomistic
labour - overly confident
labour position 1992
inability to win an election
too divided and lacked government experience
experience of 80s still too strong
had not reformed enough
conservative positon 1992
good campaign
major had a lot of respect for his old fashioned ‘soap box’ politics
still seen as the party that could get the country out of mess
major inherited economic problems
declining manufacturing output
high interest rates
steep rise in unemployment
slump in house prices
unemployement 1991-1992
rose from 1.6 mill to 2.6 mill
negatuve equity
affected homeowners
having to repay mortages that were higher than the current value of their homes
many had homes reposessed
major’s high public spending
election imminent
half of this spending was forced
due to rising unemployment
used for subsides on transport and increased NHS spending
ERM
exchange rate mechanism
set up to stablise exchange rayes between different EU countries
Britain exit from ERM
british currency under pressure from sept 1992
wanted to avoid devaluation so wanted to remain within ERM
pound continued to sink
Lamont announced decision to leave ERM on live TV 19th sept 1992
consequences of leaving ERM
economic - britain economy stablised
political - disasterious for conservatives, not seen as party of economics anymore
economy post black wednesday
prevented britain from having to keep high interest rates to protect sterling
exchange rates decreased, good for british exports
germany economy at the time
suffering costs of reunification and had sluggish growth rates compared to britian
consumer spending
increased
car ownserhip went up
house prices rose
sex scandals
over 12 involving MPs having extramarital affairs
EG. David Mellor
scott enquiry
1994 major set up to investigate illegal arms dealing
proved that government ministers had broken the rules
they were enabling Matrix Churchill to supply arms to iraqc
cash for questions
Tory MPs accused of accepting money in return for lobbying in parliament
on behalf of harrods owner Mohammed Al Fayed
role of newspapers
such as private eye, guardian and tv show ‘spitting image’ mocked major
privatisation
coal industry - 1994
railways - 1996
set to privatise Post Office but had too much opposition
Private Finance Initiative (PFI)
public-private partenerships meant private companies would fund infrastructure improvements and deliver public services so that the state would pay for over the length of the contract
Citizens Charter
1991
increase competition and privatisation in public sector to improve standards
brought free market into the public sector
EG. education more testing and ranking - brought in ofsted
pit closures
continued
in 1991, Hesteltine announced closures of 31 pits
some in Nottinghamshire - poor reward from conservatives as it was nottinghamshire miners who stood against Scargill
BSE crisis
‘mad cow disease’
threat to health in 1996
led to british beef being banned in europe
significance of major’s policies
none appeared to be big enough to undermine a government reputation
helped to cement an image of incompetence
thatcher’s policies
did not change in the final years of her administration
what did the government ban?
organisations which were believed to to support terrorist activites from broadcasting in britain
‘shoot to kill’ policy
accusations of this after 3 IRA members were killed by the SAS in gibraltar in 1988
guildford four
jailed in 1975 for life
bombing of 2 guildford pubs in which 5 people died
verdict overturned in 1989
birmingham six
jailed in 1975 for life
bombing of 2 birmingham pubs in which 21 people died
verdict overturned in 1991
secret messages
1991
government recieved secret messages hinting that sinn fein was ready to disguss a peace agreement
unionist view
fearful of being ‘sold out by the british’
republican view
deep-rooted hostility to the british
clinton involvement
made a constructive contribution, encouraging sinn fein away from armed struggle
downing street declaration
brought moderates together to isolate radicals
decided a new form of NI government
new NI government would respect all traditions
british accepted irish unity was an issue for irish people, but was only possible with consent of the north
forum for peace and reconciliation set up to promote trust and understanding
issue with irish constitution
does not recognise NI as independent, therefore would have to change its constitution
IRA ceasefire
announced in 1994
loyalist paramilitaries matched this with a ceasefire of their own
ulster unionists and decommissioning
refused to negotiate before decommissioning
bomb attacks
1999
damaged financial district of canary wharf
destroyed centre of manchester
professor alan walters
thatcher’s economic advisor
infuriated her chancellor - nigel lawson
geoffrey howe
alienated
thatcher moved him from the Foreign Office to a lesser post
thatcher’s leadership
caused many divisions
howe’s resignation speech complained that thatcher undermined her ministers over europe
divisions in 1992
despite major’s attempts to unify failed
despite election success, divisions worsened
right wingers
pushed for more radical social policies
those with leadership ambitions saw a chance to advance their claims
euroscpetics saw an opening to push out the EU
press speculation
continued about possible challengers for the leadership
micheal portillo and john redwood often mentioned
right wing press often called for leader replacement
1995 leadership election
major felt very insecure
called leadership election
wanted to be relected to gain confidencei
john redwood in leadership election
main challenger to major
backed by thatcherites and eurosceptics
hestletine in leadership election
before the ballot, major met with heseltine and agreed to make him deputy PM
hesteltine then made it very clear everyone knew he voted for major
results
major won 218 to 89
attitude of press remained hostile to major
thatcher’s comments
encouraged eurosceptic rebels demanding a referendum
her memoirs were lukewarm about major
gave support to redwood
gave support to blair in 1997
