Thatcher and the end of Consensus 1979-97 Flashcards
1
Q
What majority did the Conservatives win in the 1979 General Election?
A
43
2
Q
Give 3 Conservative influneces that conributed to the 1979 General Election victory
A
- The “Thatcher Factor” helped Thatcher win voters in marginal seats, by tapping into the votes of Housewives who had traditionally voted Labour
- The media campaign run by Saatchi and Saatchi helped them target Labour weaknesses with the famous “Labour isn’t working”
- Their policies were popular which included: preventing strike disruption, cutting taxes, keeping production up, and their promised “Right to Buy” scheme
3
Q
Give 5 Labour weaknesses that contributed to their 1979 General Election loss
A
- Inflation hit 30% by mid 1975, as Callaghan’s way of dealing with the miner strikes in 1974 was by granting them a 29% wage hike
- Between 1974 and 1976 unemployment more than doubled to 1.44 million and remained high for the rest of the decade
- The situation got so bad Britain needed to take an IMF loan in 1976
- This lack of ability to deal with inflation, unemployment and the trade unions culminated in the winter of discontent 1978-79
- Callaghan seemed out of touch, and the phrase “Crisis what Crisis” became popular form of satire
4
Q
Give 2 outside factors that contributed to the Conservative victory in the 1979 General Election
A
- The collapse of the Liberal vote in the Midlands and the South for being a part of the government (Lib-Lab pact) that failed to deal with TU’s and associated with other failings allowed the Conservatives to take seats off of them
- The Sun’s first endorsement of a Conservative candidate with the blatant headline “VOTE TORY THIS TIME”
5
Q
Overall what can be concluded as the reason for the 1979 General Election outcome?
A
Labour’s collapse, and failings to deal with the trade unions, which also brought down the Liberal Party by extension due to the Lib Lab pact
6
Q
What majority did the Conservatives win in the 1983 General Election?
A
144
7
Q
What is notable about the 1983 General Election victory?
A
Despite winning roughly 700,000 votes fewer than in 1979, they won 58 seats more
8
Q
What explains the landslide victory in 1983 in spite of the fewer votes won than in 1979
A
- Labour vote fell from 11.5 million to 8.5 million
- The Labour Party had split in 1981 with moderates breaking away from the party which had shifted left under Foot to form SDP who won 7.7 million votes with their allies, the liberals - splitting the anti-Thathcer vote
9
Q
Give 2 Conservative influences that contributed to the 1983 General Election victory
A
- Employment and Housing Act, which sold council houses to the C2 class (skilled working class) - Right to Buy
- HOWEVER, a rise in economic problems had reduced the popularity of the party by 1981
10
Q
Give 2 Labour influences that contributed to the 1983 General Election loss
A
- Michael Foot was a poor leader, and lead the party left
- This leftward shift divided the Labour Party and led to a split, where the moderate elements left to form the SDP in March 1981
11
Q
Give 3 reasons why Foot was a bad leader
A
- He had a poor media image and lacked an assured manner on television
- He had old fashioned Labour policies e.g. unilateral nuclear disarmament, further nationalisation of industry and government regulation which exclusively targeted traditional Labour voters
- The Labour manifesto was described as the “longest suicide note in history” because it was so out of touch with the country as a whole
12
Q
Give 1 outside factor that contributed to the Conservative victory in 1979 and its significance
A
- “Falklands Factor” - The Falklands war, was seen as a sign of Britain’s greater confidence and unity
- Thatcher’s dealing of it being well publicised increased her personal popularity
13
Q
What majority did the Conservatives win in the 1987 General Election?
A
102
14
Q
Give 3 Conservative influences that contributed to the 1987 General Election victory
A
- The policy of selling council houses and shares in privatised industries appealed to many middle-class and skilled working-class voters
- People were either better off, or believed the government supported their desire to increase their wealth and status
- Unemployment was falling and the pound was strong
15
Q
Give 3 Labour influences that contributed to their loss in 1987
A
- Kinnock’s style had limited appeal to many voters as he often had long winded speeches and seemed to be a weaker leader than Thatcher who had a very firm hold over her party with a growing international reputation
- Labour was more affected by the Alliance (Liberal and SDP electoral alliance) who contested every seat in 1987 - splitting the anti-Conservative vote
HOWEVER - Kinnock crushed the division within the party publicly criticised prominent left wingers and brought the party back towards the centre
16
Q
What 2 factors could be seen to have been the most important in the Conservative 1987 General Election victory?
A
- Thatcher’s strengths as a strong international figure, combined with successful Conservative policies
- The Alliance splitting the anti-conservative vote
17
Q
Give 6 arguments to suggest that there was an Economic Revolution under Thatcher
A
- Thatcher replaced the post-war Keynesian consensus with laissez faire capitalism
- She brought the rampant inflation under control through monetarism
- She reintroduced an enterprise culture
- The high personal taxation, public spending, and borrowing by the government ended
- The role of Trade Unions in economic life in Britain was significantly reduced
- She brought about a huge programme of privatisations
18
Q
Give 5 arguments to suggest that there was no Economic Revolution under Thatcher
A
- She was unable to cut government spending because of defence, law and order and unemployment benefits
- There is a strong case to be made that it was the discovery of North Sea oil and not the government policy which caused a reduction in inflation
- The public monopolies simply became private monopolies as small private share holders sold to larger financial corporations
- The money raised from the sale of public enterprises was wasted and not used to fund infrastructure developments
- Unemployment doubled to 3 million between 1979 and 1983 as a result of privatisation and monetarism
19
Q
What 3 main problems did Thatcher identify with the economy
A
- High inflation - doubled between 1973 and 1979
- Lack of investment, modernisation and stagnation
- Costly and unprofitable publicly owned industries and services
- A lack of incentive to modernise due to higher taxes as a result of inflation
- Uncompetitive industries caused by the spiral of inflation
20
Q
How did Thatcher believe these economic problems could be addressed (2)
A
- Monetarism (reducing the money in circulation, by increasing taxes and reducing government spending)
- Privatisation
21
Q
What taxation changes did Howe initially try to introduce in 1979
A
Shifted the tax burden from direct (income) to indirect (purchasing) taxes, however this worsened inflation
22
Q
How did Howe try and tackle inflation in 1980 and 1981
A
- Cut government expenditure
- Reduced government borrowing
- Increased taxes
23
Q
How did Howe describe his 1981 budget?
A
“The most unpopular in history”
24
Q
Give 4 impacts that Howe’s policies had
A
- Inflation reduced from 18% in 1980 to 4.5% in 1983
- Manufacturing output reduced by 14% - many firms went out of business and the government did little to support failing industries
- Unemployment more than doubled between 1979 and 1983 to 3 million
- High interest rates boosted overseas confidence however made conditions difficult for anyone with loans to pay
25
How can Thatcher be seen to have failed in implementing monetarism + counter
- She was unable to reduce government expenditure as a whole due to defence, law and order and unemployment benefits and it rose by 13% in real terms from 1979 to 1990
- Nevertheless, government spending as a percentage of the economy as a whole was reduced
26
What was the social cost of implementing monetarism
- Riots broke out in areas of high unemployment, poverty and racial tensions in 1981 - e.g. Brixton
- A total of 8 riots in major cities broke out in the summer of 1981
27
Why did Thatcher wish to sell off public companies
1. She believed they were overmanned and inefficient
2. She believed that selling them off would raise revenue to fund tax cuts and boost investment
28
How many shareholders were there in 1990 compared to 1979
3 million to 11 million
29
Give 3 Companies that Thatcher took public
1. BP (1979)
2. BT (1984)
3. BA (1987)
30
What changes/continuity did Nigel Lawson oversee as Chancellor from 1983-1989
1. Continued Howe's policy of shifting revenue from direct to indirect taxes
2. Reduced capital gains and inheritance taxes making British incomes the most lightly taxed in Europe
3. Deregulated the London stock market with the Financial Services Act of 1986 causing the 'Big Bang'
31
How can Thatcher's economic record be considered successful (3)
1. She succeeded in bringing down the rate of inflation from 18% to 4.5% between 1979 and 1983
2. Privatisation improved performance, lowered prices, and offered consumers more choice
3. Deregulation of the City meant that there was more encouragement of enterprise, small businesses, investment in the stock market, and individual share holding
32
What 3 things did Thatcher aim to address via social policy
1. NHS
2. Education
3. Housing
33
What change did Thatcher wish to make to the NHS
Apply business principles to the NHS to make it more effective
34
How can Thatcher's NHS reforms be considered effective? (4)
1. Hospitals were allowed to become self-governing
2. NHS services were expected to compete with one another to provide the most cost effective service to GPs
3. GPs became fund holders with their own budgets to manage
4. These changes injected financial discipline into the NHS
35
How can Thatcher's NHS reforms be considered ineffective? (2)
1. It was the first stage of privatisation of the NHS in which the profit motive would take priority over public care
2. Business methods were inappropriate for public service
36
What changes did Thatcher wish to make to education
Made education more in line with businesses
- To hold teachers to stricter quality controls
- To make universities more self-sufficient
37
How can Thatcher's education reforms be considered effective? (2)
1. GCSE's (1986) were much more inclusive and gave students better opportunities than the previous O-Levels and CSEs
2. University Funding Council was created in 1988 to ensure university education reflected the needs of the economy rather than concentrating on pure research
38
How can Thatcher's education reforms be considered ineffective? (2)
1. Thatcher was inconsistent with her simultaneous wishes for extension of freedom from government control - giving schools their own budgets - and imposing a new national curriculum
2. The content of the national curriculum cause controversy and some thought setting down what should be taught was too restrictive, whilst testing was too frequent
39
What changes did Thatcher wish to make to housing
1. To create a property owning democracy
2. To give long term council tenants the 'right to buy' and to encourage home ownership through giving tax reliefs on mortgages
3. To reward those who had shared values of hard work, self-reliance and initiative by enabling them to own their own homes
4. Owning property gave people a stake in their communities and made them less likely to support socialism
40
How can Thatcher's housing reforms be considered effective
During her premiership, the amount of government money spent subsidising mortgages doubled and property ownership increased to 12%
41
Give 3 points FOR and 2 points AGAINST why changes to education demonstrate a "social revolution"
FOR
1. Education pupils received and education structure changed
2. Standards within education and spending rose
3. Schools gained more autonomy
AGAINST
1. Local authorities strongly opposed education changes
2. University grants were not abolished
42
Give 4 points FOR and 1 point AGAINST why changes to healthcare demonstrate a "social revolution"
FOR
1. Considerable cost cutting was done with the NHS
2. NHS were able to opt out and attain independent status.
3. GPs were given control over their own budgets
4. Competition and market forces were introduced into the NHS
AGAINST
1. Leaks to the press, and fear of election defeat prevented major change in the NHS
43
Give 5 points FOR and 3 points AGAINST why changes to welfarism demonstrate a "social revolution"
FOR
1. Social security spending was more carefully targeted
2. Child benefits were reduced
3. Benefits did not go up with inflation
4. Universality was ended
5. Private and voluntary sectors were used more
AGAINST
1. Concerns about electorate prevented radical change to social security policy
2. Thatcher failed to end dependency culture
3. There was no real reduction in central control - possibly even an increase
44
Give 3 points FOR why changes to housing demonstrate a "social revolution"
1. Property ownership increased by 12%
2. Long term council tenants were given the right to buy their homes
3. Home ownership was encouraged through the subsidisation of mortgages
45
What are pickets?
Groups of workers on strike who stand outside their workplace to dissuade or prevent other workers and supplies from entering
46
What are secondary pickets?
Same tactics of pickets outside workplaces which are linked to, but not directly involved in, the dispute
47
What is closed shop?
Where membership of a certain trade union is compulsory for all workers in a particular trade or profession
48
What is a sympathy strike?
When workers not directly involved in a dispute take strike action to support workers who are on strike
49
What were Thatcher's views on British Industrial Relations
1. Existing laws on industrial relations had been abused to coerce union workers into joining unions and strike action against their better judgment
2. Union power made British industry uncompetitive which meant that business was lost to more effective overseas firms
3. Jobs would become available once unions lost their power and British industry adjusted to market conditions
50
Give 3 pieces of Industrial Relations legislation Thatcher imposed
1. 1980 Employment Act outlawed secondary picketing and increased the rights of employees who refused unions
2. 1982 Employment Act restricted sympathy strikes and only allowed closed shop if a ballot demonstrated 85% support
3. 1984 Trade Union Act required unions to hold secret ballots of their members before launching industrial action
51
How can Thatcher's dealing of Industrial Relations be considered successful?
1. Union membership went from over 12 million in 1979 to 8.4 million in 1990
2. Working days lost to strike went from over 29 million in 1979 to under 2 million in 1990
52
Give 6 reasons why the Miner's Strike 1984-85 failed
1. Thatcher stockpiled coal for 3 years and set the changes to occur so that the strike would occur in spring and summer where there was less demand for coal
2. The miners were not united and some continued working which undermined the striker's morale and painted them as extremists
3. Scargill refused to hold a ballot on whether to continue the strikes in April 1984 which deprived the strikers of legal legitimacy and alienated many mine workers
4. The Labour Party was reluctant to support NUM leader, Arthur Scargill, who recieved little public support and was widely seen as an extremist
5. Violent incidents on the picket lines undermined public support for the miners
6. Home Secretary, Leon Brittan, set up the National Report Centre in New Scotland Yard to aid with police coordination
53
What was the impact of the 1984-85 Miner's Strike?
- NUM membership dropped from 250,000 in 1979 to under 100,000 by 1987
- Thatcher asserted the government's power over Trade Unions
- Thatcher made the miners come to terms with the fact that their industry was unsustainable
54
Why did Thatcher have few supporters in 1979 (3)
1. Many in her shadow cabinet were older, more experienced and loyal to Heath and the one-nation Conservatives who wanted to continue consensus policies
2. She had limited experience in government
3. Her gender divided opinion among Conservative MPs
55
How did Thatcher overcome the lack of supporters in 1979 (4)
- She had a small band of loyalists including William Whitelaw and Keith Joseph
- She was backed in the Commons by an energetic group of supportive MPs
- She was very popular with grassroots members of the Conservative Party due to her emphasis on economic prudence, defeating socialism and restoring Britain's greatness
- She appointed a number of 'wets' to senior positions in govenrmnet including Jim Prior, Francis Pym and Michael Heseltine
56
How did Thatcher achieve mastery over her cabinet? (4)
- She initially made sure that key ministries were occupied by the 'dries' e.g. Geoffrey Howe became Chancellor of the Exchequer
- She then began strengthening her position in the cabinet by sacking three wets including Jim Prior in 1981 and replacing them with dries including Nigel Lawson
- She was initially careful to keep the support of key figures like Deputy Prime Minister William Whitelaw
- Following the 1983 election and her strength in the Falklands War she became more commanding and sacked the leading 'wet' - Francis Pym as Foreign Secretary, replacing him with Geoffrey Howe
57
How did opposition to Thatcher's style of governance grow (5)
- As Thatcher began to become more commanding, resentment about increasing intolerance for disagreement began to grow
- Opposition grew from the mid-80s with Heseltine resigning in 1986 over the Westland Affair
- In December 1987 she lost the calming and unifying figure of William Whitelaw who retired after suffering a stroke
- In 1989, her reluctance to committing to the EU led to her falling out with Howe and Lawson
- Howe's speech in 1990 played a significant part in her downfall
58
