Thatcher's Governments 1979-1987

Question 1

Why did the Financial Times describe Britain as “a very divided country” the day after the 1979 election?

Answer 1

Thatcher won the election mainly in the South of England and the Midlands, whereas Labour kept control of the industrial North, Scotland and Wales

Question 2

How did Thatcher deal with the economy in her first term (1979-1983)?

Answer 2

• Privatisation of BP in 1979
• Budget of 1980 and 1981 reduced government spending and increased VAT
• Unemployment rose to 3 million by 1983
• Recession from 1980-1982
• Inflation peaked at 22% in 1980 but fell to 4.9% in 1983

Question 3

What was Monetarism?

Answer 3

A focus on reducing inflation at all costs (even if that meant high unemployment)

Question 4

How did Thatcher deal with Trade Unions in her first term? (1979-1983)

Answer 4

• Employment Act 1980: outlawed secondary picketing; increased rights of non-union workers
• Employment Act 1982: restricted sympathy strikes; closed shops only on a vote with 85% support

Question 5

How did Thatcher manage her Cabinet in her first term? (1979-1983)

Answer 5

• Appointed “wets” to key positions to ensure less division in the party
• Appointed key “dries” (Geoffrey Howe as Chancellor, Keith Joseph in Department of Trade and Industry)

Question 6

Who were the “wets”?

Answer 6

Older ministers who expressed concern with Thatcher’s tough economic policy and attitude towards unions

Question 7

Who were the “dries”?

Answer 7

Thatcher’s loyal supporters and allies

Question 8

What contributed to Thatcher’s landslide victory in the 1983 election?

Answer 8

• Labour divisions
• Formation of SDP-Liberal Alliance in 1981
• Falklands War, 1982
• Worst of recession seemed over

Question 9

How did Thatcher deal with the economy in her second term? (1983-1987)

Answer 9

• The ‘Big Bang’ - Deregulation of trading stocks and shares in the City of London in 1986
• Continued reduction in Corporation Tax and Income Tax
• Privatisation of BT

Question 10

How did Thatcher deal with Trade Unions in her second term? (1983-1987)

Answer 10

• Trade Union Act 1984 - required unions to hold secret ballots on strikes
• Miners’ Strike 1984-1985: government successfully dealt with it despite being highly divisive

Question 11

Why did the Miners’ Strike 1984-1985 begin?

Answer 11

Announcement that 20 uneconomic pits were to close with the loss of 200 jobs

Question 12

How did the government prepare for a miners’ strike?

Answer 12

• 1981 - secret government committee began stockpiling coal
• Central Electricity Board built up large stocks of coal and oil in power stations

Question 13

Why was the Miners’ Strike, 1984-1985 defeated?

Answer 13

• Miners not united - National Union of Mineworkers split in Dec 1984
• Timing of strike in spring through summer = less need for coal
• Labour reluctant to support Scargill
• Violence on the picket lines (Battle of Orgreave and coverup)
• Scargill refused to hold a national ballot

Question 14

What was the impact of the Miners’ Strike, 1984-1985?

Answer 14

• National Union of Mineworkers membership dropped from 250,000 in 1979 to under 100,000 in 1987
• Divided opinion on Thatcher more than any other issue

Question 15

How did Thatcher’s policies impact society in her second term? (1983-1987)

Answer 15

• 1986 - O Levels and CSEs replaced by GCSEs
• Unemployment remained high (around 3 million) until 1987
• Home ownership grew from 55% of the population in 1980 to 64% in 1987

Question 16

How did Thatcher manage her Cabinet in her second term? (1983-1987)

Answer 16

• Increasingly intolerant of “wets” due to landslide victory in 1983 and increased confidence in ability
• Resignation of Heseltine over the Westland Affair damaged her reputation
• Remained popular with the wider Conservative party (grassroots)

Question 17

Which US President did Thatcher remain close to throughout the 1980s?

Answer 17

Ronald Reagan

Question 18

Where did the IRA bomb in October 1984?

Answer 18

The Grand Hotel in Brighton - where Thatcher and her cabinet were staying for the Conservative conference

Question 19

What nickname was given to Thatcher to describe her defiant approach to politics?

Answer 19

“The Iron Lady”

Question 20

How was Thatcher able to win a third election in 1987?

Answer 20

• Economic policies appealed to the middle and aspirational working-class (Right to Buy, Stocks and Shares, reduced Income Tax)
• Anti-Conservative vote was still split between Labour and the SDP
• Labour’s new leader, Neil Kinnock, still had work to do to rebuild voters’ trust in Labour after the 1983 election

Question 21

True or false: “Labour won 1.5 million more votes in the 1987 election”

Answer 21

True

Question 22

True or false: “the Conservatives won more votes in 1987 than in 1979 or 1983 but lost 21 seats.”

Answer 22

True

Question 23

True or false: “Neil Kinnock brought the Labour party back to its traditional left-wing roots.”

Answer 23

False - he brought the party back towards the centre

Question 24

True or false: “the SDP-Liberal Alliance stood down in seats where Labour could win in 1987”

Answer 24

False - they stood in every seat which split the anti-Conservative vote

Question 25

How did Thatcher’s policies impact society in her first term? (1979-1983)

Answer 25

• Riots in areas affected by high unemployment and racial tension, i.e. Brixton and Toxteth
• Housing Act 1980 (‘right to buy scheme’)
• 1981 - cuts in university budgets
• Hospitals allowed to become self-governing NHS trusts