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