Thatcher Flashcards
What issues were Britain facing before Thatcher’s government?
1975/6-full employment abandoned increasing unemployment.
Rising inflation- 1975 25-27% BUT narrowest gap between rich and poor in history.
1974 Heath’s last election- Trade Unions and ‘Three-Day week’.
1976+ Wilson’s ‘Social Contract’- abandoned increasing power of Trade Unions.
1979 Inflation- sat at 14%
Heath restricted Trade Unions by Industrial Relations Act (failed)
1978 Callaghan wage limits- lowest earners, strike actions, and Winter of Discontent.
Did Thatcher roll back in the state: education?
Increases regulation and centralisation.
1988 Education Act: SATs, GCSEs, OFSTED, National curriculum etc.
Section 28- banning of teaching about LGBTQ+.
Why did Thatcher want to roll back the state?
Cutting the red-tape.
Increase efficiency.
Cut costs and spending (reduce balance of payment deficits).
Did Thatcher roll back the state: Local government?
Reduce power of local governments- took over ‘left wing’ local governments e.g. Liverpool, London (Greater London Council abolished).
Community charge 1989 (Poll Tax riots).
Did Thatcher roll back the state: Civil servants?
1979/80 732,000 civil servants in the UK.
MINIs- monitor civil service.
By 1988 22% of civil servants sacked- restriction of civil service membership of Trade Unions and saved £1 billion.
Did Thatcher roll back the state: welfare?
Reduce size/spending on NHS.
NHS trusts- run by managers not Doctors (quality of care decreased but government spending increased).
Targets in NHS- neo-liberal ideals, market forces, and completion into Government forces.
How did Thatcher try to control Inflation 1979-83?
Monetarism: reduce the amount of money in circulation.
Higher indirect taxes (VAT increases 8% to 15%).
Lower direct tax (income tax decreases from 83% to 60%, by the end of the 1980s to 40%).
Cut government spending BUT welfare spending increases because of rising unemployment (1981-£14.5 billion and Thatcher wanted £8.25 billion).
Higher interest rates- increases to 14%.
What were the effects of Thatcher’s monetarist policies?
Rising unemployment- by 1981 sits at 3 million (highest since the 1930s).
Riots 1980/81- Toxteth Liverpool.
GDP began to grow- by 1982 at 1.3%.
Inflation never above 9% for 1980s.
Made Thatcher unpopular with economists.
How did Thatcher try to tackle Trade Unions?
Trade Union Acts- 1980,1982,1984 (closed ship and flying pickets).
Employment Acts- 1988,1989,1990 (weakened Trade Unions).
What were the key Industrial Relations strikes 1978+?
1978/9 Winter of Discontent- 20% of population supported unions (1969-80%). Thatcher blamed Trade Unions for the downfall of Heath’s government.
1984/5 Miners strike- NUM headed by Arthur Scargill (illegal strike with support from Yorkshire but not supported by Nottingham). Thatcher was prepared and stockpiled coal and used other forms of energy.
Battle of Orgreave- police ‘brutality’.
What effect did Thatcher have on Trade Unions?
Days lost to strike action fell- 10.5 million to 0.8 million by 1990.
BUT rising unemployment and poverty.
What were Thatcher’s economic aims from 1983+?
Deregulation.
Cut the red tape.
Lower power of Trade Unions.
Privatisation.
What was deregulation like under Thatcher?
Chancellor Nigel Lawson.
Increase in borrowing.
Limits control on banking.
London became the centre of international finance.
1986 ‘Big Bang’- growth of stock exchange, cause the Lawson Boom (4.5%).
How did debt change under Lawson?
Mortgage debt increases to £235 billion.
Household debt increases from £16 billion to £47 billion.
What economic policy did Thatcher follow 1983+?
Supply-side economics.
