Thatcher’s government

Question 1

Key principles of Thacher 1979 election program

Answer 1

– We can trade union power.
- Lower inflation
– introduce free market principal/deregulation
– lessen state involvement in economy
– lessen dependency on social services
– government spending on social services/address budget deficit.
– encourage British products to compete in European markets
– restore law and order

Question 2

Key principles of monetarism

Answer 2

– Achieving low and constant inflation
– government careful control of money supply through taxation/credit rates
– Money suppliers driver of economic growth: as affluence increases, so does demand, job creation and growth

Question 3

Who are the wets in Thatcher’s government?

Answer 3

Followers of traditional Conservative/Heathite policies
– Willie Whitelaw, home secretary
– James Prior, secretary of industrial relations
– Lord Carrington, Foreign Secretary

Question 4

Who were the “dries” in Thatcher’s government?

Answer 4

Followers of hardline monetarist policies
– Geoffrey Howe, Chancellor of Exchequer
– Nigel Lawson, Junior Treasury minister
– Norman Tebbit, junior Ministry of industry

Question 5

why did Thatcher struggle to implement some policies in her first term, 1979 - 1983?

Answer 5

Position within conservative party was not fully established until victory of 1983, reluctant to cause too much of a start until she has cemented position as leader

Question 6

what was government aim in introducing the poll tax?

Answer 6

To make local council more directly accountable for the spend to their voters

Question 7

when was the poll-tax introduced?

Answer 7

1988 – Scotland
1989 – England and Wales

Question 8

How did the public react to the poll tax?

Answer 8

– Number of “pull tax unions” established to protest against the government.
– nearly 30% in some areas refused to pay the tax, numbers made it impossible for government tax execute it
– March 1990, Trafalgar Square protest – at least 200,000 participants

Question 9

Why was there a rise of extra parliamentary opposition against Thatcher?

Answer 9

– Growing number of external organisation/charities, concerned with specific social/economic/environmental impacts of MT‘s policies
– Labour party was too weak/divided to provide effective opposition against conservative government(divided between labour/SDP/liberals)

Question 10

why did labour struggle to maintain its traditional support during 1980s?

Answer 10

– Increasingly dominated by extreme left-wing, moderate supporters moved towards liberal/conservatives
– programs like right to buy scheme were extremely popular with working classes.
– many members of working class work concerned with power of TU’s and wanted to restore order
– working class was declining a number due to economic changes in Britain.
– press coverage was very hostile towards labour party

Question 11

why was Michael Foot not successful as labour leader?

Answer 11

– Represented Bevanites/left, misread working classes
– supportive of unilateral disarmament, many people critical of
– extensive background with TU‘s, accusations that he was unwilling to challenge their dominance
– failed to capitalise on Belgrano incident (over 300 lives lost) I’m British intervention in Falklands

Question 12

Who was in competition against Michael foot?

Answer 12

Dennis Healey, represented more centralist beliefs.
Close competition result showing political division within labour

Question 13

Why did labour party move further left after Michael foot elections?

Answer 13

– 1981, electoral College voting system introduced (1/3 to lay MPs, 1/3 to ordinary party members, 1/3 to unions)
– unions dominated by left-wing extremism.
– vote taken out of hands of more moderate MPs, also fewer MPs allowed to come up with a list of candidates for leadership position- part of reason for SDP/gang of 4 breakaway

Question 14

Who were the gang of four?

Answer 14

founded SDP in 1981
David Owen, Roy Jenkins, Bill Rogers, Shirley Williams

Question 15

why was Michael foot’s manifesto known as “longest suicide note in history? “

Answer 15

known as “new hope manifesto”, Norman Tebbit coined phrase due to extremist character/impracticality of promises:
– nationalisation and increasing government spending
– Radical social reforms, unilateral disarmament
– Ban of Fox hunting
Most promises reflected Tony Benns beliefs

Question 16

what changes did neil Kinnock introduced to Labour Party?

Answer 16

Became leader of labour in 1983
– removed militant tendency from ranks of labour.
– Moved labour to be more moderate
– restored party discipline, changes to a more democratic voting system for party leadership

Question 17

What were main reasons for conservative victory in 1983?

Answer 17

– Victory in Falklands due to MT
– Michael foot/longest suicide note in history themes completely idealistic and impossible, not deemed suitable leader.
– opposition vote divided between labour and SDP
– conservatives presented convincing program of economic growth, lower taxes, stronger defence
– Britain’s source signs of economic recovery, low inflation rates

Question 18

how much did Thatcher reduce income tax?

Answer 18

Highest rate: 83% to 60% (1980), then 40% (1989)
Lowest rate: 33% to 30%(1980) , 25%

Very little actual change, as indirect taxes increased. Tax burden move towards medium/low income.

Question 19

what were the main benefits of privatisation?

Answer 19

– Significant income for budget.
– encourage more competition and better levels of service.
– many companies became more efficient and produced at lower costs.
– private individuals invested in British companies, people benefited financially from investment

Question 20

what changes were introduced to stock exchange in 1986?

Answer 20

– Reduced financial regulations of stock exchange, allowing growth of financial investment/foreign investment:
– restrictions for types of trading lifted, brokers allowed to charge different types of rates meaning focus on profit.
– London stock exchange privatised, became for profit organisation
– foreign companies allowed to trade in London market, increasing competition/quality
– trading computerised, making it easier, faster, more reliable.
– number of trading institutions grew, e.g. Goldman Sachs, Morgan Stanley

Question 21

Number of people owning shares increase:

Answer 21

3 million (1979)
9 million (1990)

Question 22

what was the enterprise allowance scheme?

Answer 22

Enterprise allowance scheme:
Began in 1983, Small/medium businesses offered £40 a week to encourage growth.
Funded over 300,000 people
relatively unsuccessful, only 1/3 companies actually survived

Question 23

what did thatcher’s government control inflation?

Answer 23

Raised interest rates to 17%, cutting off money supply to market

Question 24

What were the lowest inflation rates between 1979 to 1990?

Answer 24

4.7% – 19 84
3% – 1986

Question 25

Biggest successes and failures of Thacher economic policies

Answer 25

successes:
– value of pounds stabilised, British people could buy more with their money.
– middle/upper classes could retain more of income, affluence and entrepreneurship increased
– private investment in Britain increased

failures:
– levels of unemployment usually above 3,000,000
– higher pound value made British products more expensive, less competitive.
– economic growth only 2.2%, Japan/USA significantly higher
– indirect taxation move tax burden to lower classes, class divide grew and north south divide
– manufacturing industries shrunk significantly

Question 26

What caused such high unemployment in Britain?

Answer 26

– Manufacturing/traditional industries shrinking, fell by 15% during period. Growth of mechanisation
– privatisation/increase competition meant increased efficiency and job losses, only short-term contracts.
– trade union members struggled to find employment
– most investment/economic activities shifted towards London/south.

Question 27

which year saw highest unemployment?
Which areas were worst affected?

Answer 27

– 3,365,000 in 1984
– Midlands, the north, central Scotland and South Wales

Question 28

what cities were affected by 1981 racial/inner city deprivation riots?

Answer 28

– Brixton
– Birmingham
– toxteth
– Chapeltown (Bristol)

Question 29

how did Thatcher weaken TU position?

Answer 29

– Closed shop bound within industries, employers could avoid employing trade unionists (could not dominate an industry)
– unions had to hold ballot before legal strike, secondary ballots illegal.
– decline of manufacturing industry is meant working class falling altogether
– Winter of discontent convinced many workers unions were becoming dangerous

Question 30

What’s the main reasons for 19 84–85 strike?

Answer 30

– national cold board marked 20 pits for closure, close neck communities
– Scargill became leader of NUM (claimed there were plans to close 95 pits)
– unions had been successful in previous strikes e.g. in 1974 against teeth government, got pay rises

Question 31

Why did the 19 84–85 strike fail?

Answer 31

– Scargill ballot failed, so strike was illegal (therefore could freeze union assets)
– Many didn’t support his extreme political views. Labour refused to support the strike, discouraged minor.
– government scheduled closures for spring/summer so demand for Coles lower
– government prepared by stockpiling coal and oil, could substitute for North Sea oil of which that was plenty
– police provided with better training to deal with protesters.

Question 32

what was the battle of Orgreave?

Answer 32

violent confrontation in South Yorkshire, June 1984 between 5000 miners and 8000 police officers. Caused by minors trying to stop coal being transported into coal depot. 400 arrests, around 100 injuries.

Question 33

Consequences of strike on the miners

Answer 33

– Lost battle with government, more Aimable approach likely would’ve softened closures by spreading overtime.
– many communities e.g. forest of Dean and North completely destroyed by closures.
– coal industry employees 200,000 people (1979) by 1990 only 60,000
– non-participants called scrubs and traitors, caused tensions.
– 20,000 miners injured, two killed, 13,000 arrested, 200 prison sentence

Question 34

Why was Thatchers right to buy scheme more successful than Callahan (originally tried?)?

Answer 34

scheme run by central government, before local councils had option of participating but not compulsory.
– mortgage is more affordable, more readily available (less financial restrictions)
– discount offered more attractive (33–50% of house value)
– virtually all council houses included

Question 35

What was the impact of the right to buy scheme?

Answer 35

Positive:
– Homeowners rose by 2 million
– property became reliable and popular investment option.
– values of property rose by 300% by the end of 1990
– popularity of that of significantly impose, allowed whole new group of people to own property

Negatives:
– growing discrepancy in property value, rising property values meant people pushed out.
– many took mortgages at 100% of house value, very vulnerable when prices fluctuated
– as unemployment rose people struggle to pay new mortgages

Question 36

why did Thatcher promote the right
to buy scheme?

Answer 36

– Creating a property owning democracy: more sense of personal responsibility and achievement in society.
– stability and responsibility in communities.
– promoting social mobility into middle classes, increasing number of conservative supporters

Question 37

what organisations provided opposition to the government during the 1980s?

Answer 37

– Campaign for nuclear disarmament
– greenpeace
– friends of the Earth
– shelter
– age concern
– the church

Question 38

what was the purpose of the Greenham common protest?
Why was I growing concern over the environment?

Answer 38

– To challenge “cruise “missiles from being based in the United Kingdom
Chernobyl disaster worsened these fears, as well as concerns over environment
– research proved ozone layer was decreasing in several areas.
– Bhopal gas leak in India, 1984

Question 39

What was faith in the city report?

Answer 39

– Commissioned by Church of England in 1985
– highlighted social and economic issues created by Thacher’s policies.
Criticised government for taking no responsibility for growing poverty, social conflict, mental illness issues caused by policies

Question 40

Key population changes/social changes during 1980s

Answer 40

– 1975: 56 million 1990: 58 million
– Migration to urban areas for job opportunities
– flow of Asian immigrants following Bangladesh Civil War. Growing race will conflict in urban areas over low paid jobs. National front in some area.
– North south divide accentuated by social policies, migration within country to south

Question 41

Key reasons for decline of inner cities

Answer 41

– Development of retail outlets outside city centres smaller businesses closed down
– long-term lack of investment in town centres.
– town Centre properties tended to be less quality, less popular with right to buy scheme – poorly maintained, unattractive
– as the properties were cheap, often occupied by immigrants/unskilled working class. Levels of unemployment significantly higher in inner cities (around 15–25%, amongst racial minorities reaching 50%).

Question 42

what was government response to inner city riots?

Answer 42

– Some police, given more extensive powers for stop and search. provided with special training to deal with riots.
– judge has given special powers to enforce higher sentences for riots.
– Scarman report commissioned to investigate reasons for riots.
– few revitalisation schemes run, most unsuccessful (exceptional Canary wharf)