Thatcher on party and policy development Flashcards
Cabinet reshuffle
1981 - ‘Purging the wets’
The Wets were men appointed by Heath e.g. Jim Prior, Lord Hailsham, William Whitelaw and were committed to the post-war consensus so were marginalised in Thatcher’s gov
One Nation Conservative values were rejected
Excluded wets from key areas of economic policy instead promoting Thatcherite ‘drys’
Prior was employment secretary but moved to the secretary of state for NI- for ministers who were out of favour- clear sign Thatcher was unwilling to change
Rise of the Thatcherites - Supported the political and economic policies of Thatcher, eg. privatisation and TU legislation. Following the reshuffle Thatcherites were increasingly dominate in the Cabinet. Took her 2 more election victories to win over the majority. End of the 1980s the older consensus ideas were a minority in the party
Thatcher and Heseltine
Michael Heseltine was a ‘wet’ who survived the reshuffle and was the sec of state for Environment.
Challenged Thatcher in cabinet about the scale of unemployment in the early 80s. Policy disagreement and Thatchers dominate personal style alienated Heseltine.
Heseltine believed her presidential style of governing was unhealthy: the cabinet should play an important role in the creation of government policy
The Westland Affair 1985-86 - conflict over the sale of Westland Helicopters. Disagreed over the future of the company- important British defence manufacturer. Led to Heseltine’s resignation which was largely the result of Thatcher’s presidential style
Major was different to Thatcher
Poll tax
Increased the gov’s grant to LA’s to reduce the 1990-91 poll tax bills by 50%. Appointed Heseltine to design a replacement
Council tax re-established links between local taxation and property value- had exemptions to people living alone (pay less than those with multiple wage earners)
Relatively uncontroversial and much less unpopular. Abandoned Thatcher’s principle that taxpayers should share the burden of gov spending to make local gov accountable
The Public Sector and Welfare
NHS- further emphasised the Cons commitment to universal state-provided healthcare
NHS and Community Care Act- introduced 1990- established an internal market in the NHS, market forces made the NHS more efficient and responsive to patient demand
Private Finance Initiative (PFI)- introduced 1992 - the state should fund, but not provide public service - established a system private companies would build and run schools and hospitals in return for payment from the gov- contracts were lucrative, competition was fierce
Private sector was viewed as more efficient than public sector- outsourcing the provision of public services to private companies would benefit taxpayers and the people who used them
Style
Major’s government was radically different from Thatcher’s as Major was more consensual compared to Thatcher’s domineering personality he tried to work with different wings of his party and seek compromise. He recognised that the Thatcher years were full of conflict, and he aimed for less division to let the country heal
Thatcher claimed Britian problems were created by socialism which ruined economy and moral character of the nation causing a dependency culture. Major could no longer blame problems on Labour government of the 70s or the trade unions
Major was forced to deal with the problems of privatisation – rising utility bills and rail fares, a recession caused by Tory chancellor
Thatcher was clear on who the enemy way and the cause of issues - Major had no scapegoat other than the poll tax and his party would not allow him to acknowledge Thatcher’s mistakes
Major was a continuation of Thatcher
Economic policy - Major’s main economic priorities were growth and low inflation. Used free-market mechanisms rather than returning to Keynesianism or corporatism. The National Economic Development Council- the centerpiece of gov corporatism in the 60s and 70s, was abolished by Major in 1992.
Privatisation of the public sector - Sold off the bulk of the state’s electricity companies in 91- remainder in 95 and British Rail 92
New consensus- the state had no role in running telecom businesses, car plants, mines, airways or steel mills. The public was less willing to support privatising the railways, water, gas and electricity.
Problems - water bills rose in the first 5 years, neglect of issues like fixing burst water pipes, the government continued to subsidies private companies such as the train operators. A permanent rolling back of public sector ownership, a new consensus against nationalisation. Didn’t lead to a rolling back of state spending as later privatisations were accompanied by long-term gov subsidies.
Law and Order -
Thatcher law and order policies proved to be influential and under Major policing got even tougher and traditional rights were removed
Concern about rave culture and acid house led to the introduction of the Criminal Justice and Public Order Act (1994).
The law gave police the power to target raves. The act partially removed the right to remain silent after arrest and criminalised squatting and unauthorised camping
Labour a jump to the left
1980 – a leader change over led to left-winger Michael Foot becoming the Labour leader.
He changed the manifesto to include…
- Getting rid of nuclear weapons before any other country did with the hope that they would follow suit
- Ending privatisation and renationalising privatised industries
- A massive increase in spending on social welfare
- Leaving the European Economic Community (EEC)
The radical left-wing manifesto was a reason for one of Labours worst defeat.
1983 – Michael Foot is no longer leader and Niel Kinnock becomes Labour leaders and after the defeat Kinnick and Hattersley began moving the party to the right
A step to the right under new leader Kinnock
When Kinnock stepped up, he started the shift towards this more centralist mix of left and right politics.
It furthered under Tony Blair in 1994 with his new manifesto which rebranded the party and his radical ideals appealed to the younger generation while his Thatcherite policies led to the middle and lower classes to vote for him as he does not try and divert too far out of what they are used to under Thatcher
Tony Blair’s - New Labour similar policies to Thatcher
Commitment to free market not Keynesianism or corporatism
Rejection nationalisation
PFI and internal markets still used in public sector
Welfare reform to tackle dependency culture
Emphasis on tackling crime through police action and longer sentencing for crimes
Tony Blair’s - New Labour different policies to Thatcher
More protection of civil liberties by using Bill of rights into British Law
Limiting states right to keep secrets through Freedom of Information Bill
Devolution of Scotland and Wales – constitutional reform
More protection of minority rights – laws to secure women, Black, Asian, LGBT rights – repeal of section 28
Better regulation of the market for consumer rights
More spending on health education and infrastructure
More accountability in local government through the creation of directly elected Mayors
More representation for minority groups and women in politic
More union and workers’ rights though European social chapter
Introduction of minimum wage
The SDP-Liberal Alliance policies
Started an alliance together in 1981 as they were opposed to what they saw as extreme politics with two main parties
Thye advocated radical constitutional reform – introduction of proportional representation, bill of rights a written constitution and freedom of information legislation
Most pro-European of the major parties
Supported co-ownership rather than privatisation or nationalisation
Gained a 25.4% share of the votes in 1983 which was 23 seats but by 1987 they declined with 22 seats
They merged in 1988 creating the Liberal Democrats but David Owens disagreed and did not lead it
The SDP successes
The Alliance gained a 25.4% share of the vote in 1983-only 23 seats.
1987 the Alliance had failed to make a major electoral breakthrough and their share of the vote began to decline, leaving them with 22 seats.
A merger in 1988 created the Social and Liberal Democrats, which by 1997 was known as the Liberal Democrats.
The merger, however, was controversial and David Owen refused to join the new party, remaining head of a smaller SDP.
Thatcher’s impact on the SDP
1983 manifesto had a commitment to corporatism and a mixed economy
By 1987 its position had changed, and corporatism had been dropped except for an income’s strategy
The LibDems drifted to the right which was not fast enough for Owen. He advocated for a social market economy which accepted the Thatcherite view that the market was the most efficient way of generating and distributing wealth.
Owen wanted to protect the state provision of healthcare and education and wanted to reform the welfare system so its targeted benefited helped the poorest without creating a dependency culture
By 1988, Owen was influenced by Thatcher so much he was ‘Thatcher with Brylcream’ (hair product)
The influence of the ‘Owenite’ SDP
After 1988 the SDP was seen as a one-man band and members of the party took new direction
Several former members of the SDP became policy advisors for Major while other joined New Labour
Former SDP members played a key role in devising policies that recognised the need for the state to provide certain forms of welfare within a free market
They played a role moderating Thatcherite policy and developing the polices of new Labour
The influence of the Liberals
Had been consistent advocates of constitutional reform, and their arguments influenced the direction of New Labour.
Traditionally the Lab Party had not been in favour of a bill of rights, freedom of information or voting reform.
However, New Labour accepted all of these reforms, at least to some degre.
Blair’s willingness to consider constitutional reform was a debt to the Liberals and groups like Charter 88 rather than Thatcher.
