Thatcher and the end of consensus 1979-1997

Question 1

Positives for the conservative party

Answer 1

Thatcher brought a new attitude, she was determined to decrease inflation.
Series of laws between 1980-84 “reformed” industrial relations.
Reformed schools and universities.
Negotiated concessions in 1991.
The failure of the labour government.

Question 2

Negatives for the conservative party

Answer 2

Tax and interest rates increase.
Blamed for unemployment.
Unpopular.
Inflation returned to its prior rate by the end of the decade.
Disagreements between ministers (eg. Britain’s relationship with the EEC).
The consequences of the poll tax.
Humiliation of having to withdraw from the Exchange rates mechanism reduced confidence in the conservatives. 1992

Question 3

Why did Thatcher win in 1979?

Answer 3

Conservative strengths:
Southern majority, middle class resented the strikes.
Opposition weakness:
Labour failed to deal with inflation, unions and unemployment.
Other reasons:
Collapse pf the liberal party, seats handed to the conservatives.

Question 4

Why did Thatcher win in 1983?

Answer 4

Conservative strengths:
Victory in the Falklands in 1982 won a lot of popularity.
Opposition weakness:
Disastrous split in labour, labour’s manifesto (longest suicide note in history), industrial nationalism had appeal to traditional voters, foot’s policies.
Other reasons:
The alliances between the liberals and the SDP allowed the conservative to gain seats.

Question 5

Why did Thatcher win in 1987?

Answer 5

Conservative strengths:
Policies of selling council houses, privatised industries appealed to middle classes.
Unemployment seemed to be falling.
Thatcher’s personal appeal.
Opposition weakness:
Labour had not fully recovered since their defeat.
Kinnick’s style and limited appeal.
Affected by the alliance who contested (compete) every seat.
Other reasons:
No prior events to influence people’s opinions.
Economic success.
Believed the govts supported desires for status/wealth.

Question 6

Inflation consequences

Answer 6

Positives:
Businesses free from tax in order to thrive.
Rising wages increased purchasing power.
Negative:
Made British industry over-priced.
Direct and harmful result of “Keynesians” (because prices are somewhat rigid, fluctuations in any component of spending—consumption, investment, or government expenditures—cause output to change).
Reduce money in circulation.

Question 7

Taxation policies not stock market

Answer 7

Positives:
Some workers received pay awards and the tax burden was shifted.
Negatives:
Initial measures worsened measures.
Increased price of goods.
Resorted to deflationary measures.
Budget cut expenditure and increased taxes.

Question 8

Howe’s policies

Answer 8

Positives:
Helped inflation.
Rate at which prices rose reduced to 4.5%.
Value of the £ increased.
Boosted financial sector.
Growth rate increased.
Negatives:
Economic downturn.
Manufacturing output fell by 14% = out of business.
Unemployment doubled.
No industry support.
Made conditions hard for anyone with loans.

Question 9

Privatisation

Answer 9

Positives:
3 million to 11 million privatised industries.
Value of shares rose.
Negatives:
Many sold shares.

Question 10

Tax cuts and deregulation.

Answer 10

Positives:
Reduce the basic rates of income tax.
Other taxes reduced so British incomes lightly taxed.
Revitalised the city of London’s market.
Negatives:
Indirect taxes increased.
Financial services Act 1986 deregulated the London stock market.
Gaps between the finance and industry sectors increase.

Question 11

Thatcher’s economic record

Answer 11

Brought down the rate of inflation.
Privatisation increased performance.
Deregulation meant London remained the finance centre.
Extension of shareholding.
Came from North Sea oil.
Privatised industries didn’t benefit the customers.
Social cost outweighed the benefits and the government were perceived as selfish.

Question 12

NHS

Answer 12

Modern management to (1983) replace consensus, general management where responsibilities should lie. Outlined in report in 1983.
“Internal management” to shape the structure and organisation which resulted in shorter waiting times.
Financial strain and recieved opposition, caused a reduction in quality care for patients.

Question 13

Education

Answer 13

Introduced marketisation principles into national education.
Education reform act of 1988 introduced a national curriculum.

Question 14

Housing

Answer 14

Establish the uk as a “property owning democracy”
1 mil homes sold to tenants under the scheme who stepped on the housing ladder.
Voting shift for working classes.
Opposed by labour because it depleted council housing stocks.

Question 15

Thatchers aims with the trade unions

Answer 15

To stop strikes.
Union power made British firms uncompetitive which meant that business was lost.
Jobs would become more available of industry adjusted to market conditions.

Question 16

Thatchers successes with the trade unions

Answer 16

Govt money made more available to encourage unions to hold ballots.
Restricted strikes.
Accelerated the social and economic change

Question 17

Thatchers criticisms relating to unions

Answer 17

Union membership fell.
1984-85-Miners’ (coal) strike to prevent it closure faced a loss of £250 million and didn’t receive support.
Violent/hostile demonstrations.

Question 18

Why was thatcher able to reduce the power of the unions

Answer 18

The miners were not united as some opposed the strike.
Strike was held in the spring/summer, less demands for coal means less general impacts.
Many gave up because they had suffered from the economic damage.
Govt prepared to use force to stop strikes.
1984- Arthur scargill refused to hold a nation ballot of miners on whether to continue, depriving the strike of legitimacy and alienating the workers.

Question 19

How did poor leadership impact labour’s performance?

Answer 19

Broad ideological spectrum meant a lack of unity.
Lost faith in consensus- the lurch to the left,
Left pushed for demands and criticised leadership.
Succession of right wing followed- double motives.
Leadership constantly attacked.

Question 20

How did labour policies impact their performance

Answer 20

The manifesto went against public appeal, voters felt alienated by the Labour Party.
Labour voters were not attracted to many socialist policies, dividing voters.
People lost hope in their policies.

Question 21

How did other factors impact labour’s performance

Answer 21

Decline in traditional identification with the working class.
Dramatic decline in voting percentage.
People supported Thatcherism more.

Question 22

Thatchers lack of support in 1979

Answer 22

Few allies because they were loyal to Heath.
Shared the view that the government should’ve actively managed the economy.
She did establish localities- backed in commons by MPs.

Question 23

Concerns about a woman leader

Answer 23

She had courage and charm.
She was hard-working.
She won support through clever preparation.
Aftermath of the Falklands war.

Question 24

Lack of experience in government

Answer 24

She appointed senior members “Wets” when she initially gained leadership however she sacked and replaced with the “dries” and welcome more change which enabled her to support her supporters.

Question 25

“Wets” in cabinet who opposed changes

Answer 25

Sacked and replaced them
Francis Pym to Geoffrey Howe.

Question 26

Reasons Thatcher was supported

Answer 26

Resolute, clear-sighted leader.
Believed net programme was necessary and radically different.
Influenced changes globally.
Personal toughness in the face of adversity.
Determination and self- confidence made her different “Iron Lady”.

Question 27

Reasons thatcher was criticised

Answer 27

Controversial policies
Shifting the tax system disproportionately hit the poor
Those who lost industry jobs suffered
Disapproval of the welfare state.
Increase of homelessness.

Question 28

Poll tax

Answer 28

Replaced the tax rates with a fixed rate for every person, massive demonstrations against it.
Govt believed to be dictatorial and alienating voters.
Showed the policies the govt put out and the unjust inequalities facing the lower classes.

Question 29

Relations with her ministers

Answer 29

Core mps willing to vote against Thatcher.
Triggered by Geoffrey Howe he resigned and was a victim of maltreatment because of Thatcher, was publicised and displayed all over the media.
Foreshadowed thatchers inevitable decline.
Internal divisions weaken her credibility as a suitable candidate.

Question 30

Attitude of her MPs

Answer 30

Feared the conservatives would lose the next election with thatcher as a leader, highlighted the turbulence within the Conservative Party and issues with thatcher herself.

Question 31

State of the economy

Answer 31

Stock market crash of 1986 wiped off 24% which triggered a recession.
Reduced income tax which resulted in a consumer boom and price increases.
No control of inflation.
Taxes increased again.
Went against thatchers aim of controlling the economy, questioned her credibility.

Question 32

Divisions over Europe

Answer 32

Didn’t want the member states to have an economic union.
Removed her cabinet for having other ideas.
Rift made her appear isolated with weakened authority.
Denounced plans for European integration.

Question 33

Image of Major

Answer 33

Lacked authority because he was only voted as they didn’t want Thatcher.
Limited experience.
Uncharismatic personality was ridiculed in the media,
21 seat majority meant he could be:
Threatened by opposition.

Question 34

Divisons over Europe under Major

Answer 34

Eurosceptics- should be separate from Europe.
Some supported European involvement.
Had to force the ratification bill through parliament threatening a resignation.
Conservatives rebels defeated the government.

Question 35

Conservative economic policy under major

Answer 35

1992- measures to curb inflation caused economic depression.
Unemployment increased and more business fell as the GDP diminished.
Black Wednesday- Britain withdrew from the Exchange Rate mechanism because the value of the sterling fell.
Tarnished reputation and proved eurosceptic theories.

Question 36

Sleaze and scandals
2022 Q

Answer 36

Maastricht ratification- Major caught complaining about his cabinet.
Seemed like he had little control over his government.
Election against euro sceptic redwood showed divisions.

Question 37

New Labour

Answer 37

Expelled the extreme left.
The party was modernised and rebranded by Blair which appealed to conservatives business men and he reassured the bankers about Labour policies which shifted the votes.

Question 38

Image of Blair

Answer 38

Youth and optimism appealed to voters.
Effective media presentation.
Reform of Clause IV and persuading business men and media weakened the conservatives campaign.

Question 39

What was monetarism and what was it’s impact?

Answer 39

Reducing inflation
Lower public spending with a high interest rate.

Question 40

What industries were privatised

Answer 40

Oil electricity steel water airlines