Thatcher's Downfall

Question 1

1987 stock market crisis?

Answer 1

Came just after her third election victory
Severe economic crisis following the Big Bang

• Nigel Lawson’s 1988 budget saw economic boom - however this was short lived and led to a balance of payments crisis

Question 2

Inflation in 1990?

Answer 2

Inflation rose to 10.9% - higher than it had been in 1980

Rising rates of inflation led to Britain’s entry into the ERM

Question 3

Political problems?

Which four people resigned?

Answer 3

Michael Heseltine
Nigel Lawson
Leon Britain
Nicholas Ridley

Heseltine: thatcher privatised Westland helicopters, selling the company to another US company - Heseltine wanted Westland to be sold into Europe - when thatcher didn’t he resigned

Leon Brittan: resigned in protest against Heseltine’s resignation

Nigel Lawson: Thatcher sought counselling on her economic policy from economics professors Dr. Alan Walters rather than Lawson who was her chancellor

Nicholas Ridley: resigned in 1990 after making anti German comments during an interview

• all of this highlights divisions in thatchers government and led to her downfall