The Impact of Thatcherism 1979-1987 Flashcards
What were the main challenges facing Thatcher in 1979?
-Following the winter of discontent > industrial relations low
-Inflation and the value of the pound
-Devolution
-Cold war > Britains diminishing world status
-Northern Ireland
-Unemployment was high
What is Thatcherism?
-New harsh shift to the right with a strong stance on free market economics, the unions and the welfare state.
-Focus on the individual
-Small state
-The job is to get out of the way
Who was Keith Joseph?
-Leading conservative thinker
-Introduced Thatcher to the ideas of liberalism and free-market economics
What did Keith Joseph believe?
-Believed that the role of the state > provides conditions in which individuals are free to make their own choices > Individualism and liberalism
How could Thatcherism address the problems of 1979?
-Inflation > The dismantling of stop-and-go economics creates the ability to allow free-market economics and reduces the inability for economic planning
-Firm stance against the unions > challenge union leaders authority
Who was Michael Heseltine?
-Wet
-Secretary of state for the environment 1979
-Promoted “right to buy” campaign > allowed people to purchase their council houses
Who was Jim Prior?
-Wet
-1979 > Employment secretary > Norman Tebbit took over in 1981
-1981 > NI secretary
Who was Francis Pym?
-Wet
-Defence secretary and then foreign secretary
Who was Geoffrey Howe?
-Dry
-1979 > Chancellor in the first cabinet
-Foreign secretary in 1983
-1989 > demoted to leader of the commons
What was said about debating with Howe?
‘like being savaged by a dead sheep’
Who was Willie Whitelaw?
-Dry
-Deputy PM, Home Secretary until the 1983 election where was made the leader of the HOL
Who was Keith Joseph in the cabinet?
-Dry
-Appointed Trade secretary in 1979
-seen as an intellectual > driving force of Thatcherism
-dubbed the ‘mad monk’
-by 1981 he had moved to education
Why did Thatcher struggle to assert her authority when she first took over as PM?
-Did not have the backing of many senior members of the party
-Loyalties to heath from the more experienced MPs
What characterised the ‘wets’ in Thatchers cabinet?
-They were one nation tories
What characterised the ‘dries’ in Thatcher’s cabinet?
-They were ideologically aligned with the basis of Thatcherism
How did Thatcher begin to overcome the challenges within her party 1979-1982?
-Established a small band of loyalists
-Backed in the commons by an energetic group pf supportive MPs
-Very popular with grassroots members
What role did the ‘dries’ play in Thatcher’s management of cabinet?
-Key ministerial roles
-Sacked ‘wets’ to push her ideas to the forefront
How was Thatcher successful in reducing inflation through her economic policy 1979 to 1983?
-Interest rates were increased > discourage spending > 1981 VAT rose from 8% to 15%
-1981 Indirect taxation increased > duty on petrol increased 20p per gallon, duty on cigarettes increased by 13p
-By 1983 inflation fell from 22% to 5%
-Interest rates were raised to 17% in 1979
How can Thatcher’s economic policy of 1979-1983 be seen as a failure in reducing inflation?
-Tax burden in the early 1980s was higher under Thatcher than any Labour govt
-By 1980 inflation was above 15% > stagflation was back
-May 1979 Inflation hit 22%
How did Thatcher successfully support the Private sector through her economic policy from 1979 to 1983?
-The govt cut direct taxation > 1979 top rate of tax was cut to 75% > standard rate fell from 33% to 30%
-redistributed indirect taxation > favoured the wealthy
-Outsourcing > more common > local govt encouraged to give contracts to private companies
-BP privatised in 1979 > British Aerospace privatised in 1980
-Housing Act 1980 > Right to buy scheme > 2million bought their homes
How can Thatcher’s economic policy of 1979-1983 be seen as a failure in supporting the private sector?
-Enterprise Allowance Scheme 1983 > One in six of the start-up businesses failed in the first year
-Not able to pursue privatisation fully due to unemployment
-£ 9 million to save the maiden motorcycle corporation
-£200million was given to the computer giant ICL to prevent liquidation
-£13million was assigned to write off the debts of the National film finance
How can Thatcher’s economic policy of 1979-1983 be seen as a failure in reducing govt spending?
-Govt borrowing continued to rise > Howe aimed to reduce govt borrowing from £9.25billion to £8.25billion by 1980
-January 1881 Govt borrowing was revealed to hit £14.5billion
-Led to the 1981 budget cuts > “most unpopular budget in history” > The Times > 1981 364 economists wrote to the Times highly critical of Thatcher
-Public spending as a proportion of GDP jumped from 44.8% to 47.3% between 1980-1981 due to cost of unemployment benefits
How did Thatcher successfully create jobs through her economic policy from 1979 to 1983?
-Enterprise Allowance scheme 1981 > Creating new businesses > seen to create new jobs
-EAS > £40 per week to unemployed people who set up their own business
-Youth unemployment schemes created > encouraged employment to take on young people
How can Thatcher’s economic policy of 1979-1983 be seen as a failure in creating jobs?
-EAS > seen not to help those lower down in society
-Unemployment by 1980 was above 2 million
-By 1983 unemployment reached 3 million> 13.5% of the workforce > Liverpool 25% unemployed
How did Thatcher successfully control the unions through her economic policy from 1979 to 1983?
-Employment acts in 1980 and 1982 outlawed secondary picketing > made closed shops illegal and declared industrial action illegal unless the workers voted
How did the Economic policy lead to increased riots and resistance?
-Economic policy led to increased unemployment and hardship > Brixton 13% unemployment > Unemployment for ethnic minority groups 25% in Brixton > Unemployment for Black school leavers in Brixton was 50%
-Riots broke out in Brixton, Toxteth, Moss Side
-Thatcher used Police repression > ‘Sus laws’
What were the ‘SUS’ laws?
-Stop and search for a suspicious person
-Mainly aimed at young black men
What happened on the 18th of January 1981 which suggests poor relations between ethnic minorities and the govt?
-Fire broke out in New Cross (SE London) > killing 13 black teenagers celebrating a 16th birthday
-There were no messages or condolences sent by public figures > “13 dead and nothing said” became the slogan > accusations of a police cover up > peaceful protests
What happened in April 1981 which suggests poor relations between ethnic minorities and the govt?
-Campaign in Brixton to bring law and order by the police called “Swamp 81”
-Violence between the community and the police > 279 police injured, 45 members of the public, 82 arrested and 28 buildings torched
What happened in July 1981 which suggests poor relations between ethnic minorities and the govt?
-Rioting broke out in Bristol, Toxteth (Liverpool), Birmingham, Blackpool, Hull, Leeds, Leicester, Preston and Wolverhampton
When was the Falklands war?
April to June 1982
What was significant about the Falklands?
-Under British rule since 1833
-small population > 80% supported British rule
-400 miles off the coast of Argentina
What did the Foreign secretary do in 1981regarding the Falklands?
-Withdrew Britain’s only ship in the South Atlantic > HMS Endurance
What happened during the Falklands conflict?
-British airstrikes on Argentine forces on the island
-200 mile exclusion zone enforced
-The US allowed GB to use bases but did not support it with troops or resources
-Belgrano snak by the British submarine, HMS Sheffield destroyed by an Argentine missile
-UN worked on a peace treaty > undermined by the conflict from both sides
When did British forces reclaim port stanley?
14th June 1982
What were the political benefits of the Falkland war for Thatcher?
-Celebrated war leader > likened to Churchill
-Military victory overseas was popular > “Falklands factor”
-Personal approval ratings of Thatcher increased
-42.4% voted for conservative in the 1983 election (397 seats) > only 27.6% for labour (209 seats)
How did the Falklands strengthen Thatcher’s position?
-Could exploit the FF for full political gain > personalisation of politics
-Member state of the UN > She felt she was defending the UN
-Used Lord Carrington’s resignation (foreign sec) to lessen blame for the invasion
The military heavily supported Thatcher’s approach
-Seen to dominate the world stage
-Blame foreign and commonwealth offices for corrupting views “Rent a spine”
-War cabinet agreed with Thatcher > Declined Pym and Hague’s peace proposals
What significant quotes were said by Thatcher regarding the Falklands war?
-‘ Britain held its head high’
-‘ You can’t negotiate the freedom of your people
What was the Falklands war impact on Britain’s relationship with Britain?
-America stood ready to support ‘peace and honour’
-Alan Hagues (Secretary of State) > wanted a negotiated peace settlement
-Foreign sec > Pym and Hagues met in Washington > Thatcher did not like Hague’s proposals of conceding to the Argentines
-Thatcher ignores the US > tensions rise > rejection of American proposals > Thatcher stands her ground
What did the Falklands do to weaken opposition to the Conservatives?
-Labour party divided
-Labour fully supports the UN and wants to settle peace treaty > difficult as thatcher won the war > Cannot criticise too much > British deaths and British patriotism
What characterised the ‘Looney left’?
-Heavily influenced by Marxism
-Tied to radical Trade Unions
-Strong in Local councils > especially in London and Liverpool
-Factions within the Labour Party
-Militant tendency > far left, radical, Trotskyist branch of the Labour party > held some labour local councils
-Barmy Bernie > Bernie Grant
-Red Ken > Ken Livingstone
-Red Pete > Peter Tatchall
Who were the Labour leaders during Thatcher’s time in office?
-Callaghan until Nov 1980
-Micheal foot from Nov 1980 till Oct 1983
-Neil Kinnock Oct 1983
Why was the Labour party it’s own worst enemy from 1979-1987?
-divided party more concerned with its own internal wrangles than preparing itself for govt
-Split between right and left of the party
What was the significance of Tony Benn in the Labour Party?
-Right-wing tabloids > portrayed him as a dangerous representative of the Looney left
-opposed EEc and EU > saw them as undemocratic
-couldn’t convert his popularity into a successful bid for leadership
-More left-wing than Foot and had support of MIlitant tendency
Why was Foot deemed as unsuccessful as a leader?
-Led the 1983 campaign in an uninspiring way
What did Benn do in the 1980 and 1981?
-Led a campaign to change the party constitution > resolutions that required all Labour MPs to seek reselection by their constituencies > forcing g through left policies > hijacked left
What were elements in Labour’s 1983 manifesto which enabled them to come close to ‘political oblivion’?
-5 year plan
-Improve industrial relations through union democracy
-Increase nationalisation
-Ban arms sales to oppressive regimes
-leave the EEC
What was the gang of four?
-Four main labour MPs who broke away to form the SDP
Who were the four MPs who created the SDP?
-William’s, Owens, Jenkins, Rogers
Why did the four leave the Labour Party?
-Unhappy with Trade Unions
What was the aim of SDP?
-aimed to attract disaffected conservative and labour voters
What was the SDP’s effect on labour?
-Damaged them through divisions and took labour voters
What was the Lime House declaration in regards to the SDP?
-Announced the formation of the Council for social democracy > SDP
-28 Labour MPs followed
What was the Wembley Conference in regards to the SDP?
-Notorious for the hostility to the speakers from left-wing and hard left hecklers
Who from the SDP won a by-election in Crosby November 1981?
-Shirley Williams
When did Roy Jenkins win a by-election for the SDP?
-Glasgow 1982
What was the SDP and Lib dem alliance?
-Lib Dem and SDP merged in 1983
How much of the popular vote did the Alliance gain?
25% in 1983
How did the Alliance help tory success in the 1983 election?
-Took loads of support from Labour
What was the Anti-conservative vote?
16million > 3million mofe than the pro-conservative vote
How were labour weaknesses amplified by demographic changes?
-Labour could no longer rely on traditional working-class supporters
-Rise in national pride for the Tories
-Labour supporters > some became conservatives, SDP or liberal > Thatcherite conservative voters
What legislation did Thatcher put in place to deal with Industrial relations?
-Employment act of 1980
-Employment act 1982
-Trade Union Act 1984
What was the Employment act of 1980?
-Outlawed picketing & increased the rights of employees who refused to join unions
What was the 1982 Employment act?
-Restricted sympathy strikes & allowed closed shops only if a ballot showed 83% support > anyone sacked for not joining a union became entitled to high rates of compensation
What was the Trade Unions act of 1984?
-Required unions to hold secret ballots of their members before launching industrial action
What were the successes of Thatcher’s legislation to tackle Industrial relations?
-Number of working days lost to strikes dropped > 29.5million in 1979 to 11.9million in 1980 and 4.2million in 1981
What were the other reasons for the success for Thatcher’s legislation to tackle Industrial relations?
-High levels of unemployment deterred strike action
-worker were less ready to strike knowing they could easily be replaced by the large pool of unemployed
-Union membership continued to fall > more difficult for the unions to mobilise strike action
When was the Miner’s strike?
1984-1985
What were the reasons for the Miner strikes?
-1st march 1984 > massive pit closure programme was introduced by Thatcher > 20 uneconomic pits would be closed > loss of 20,000 jobs
-National Coal Board was facing a loss of £250 million 1983-1984 > govt could not prop up a loss-making industry
-Scargil > persuaded NUM leadership to strike in order to prevent job losses and to bring down the conservative govt as they had done in 1974
What were the strike tactics used by the NUM and Scargill during the Miner’s strikes?
-Scargill > scaremongering> more than 20,000 jobs would be lost
-miners who didn’t strike > ‘scabs’ > ostracised by their communities
-flying pickets were used
-Strike set out as a fight for survival against a govt set to destroy them
What were the strike tactics used by the govt during the Miner’s strikes?
-When NUM called a national strike without a ballot > govt able to take legal action - fines and seize assets
-govt refused to pay state benefits to many miners
-Police > roadblocks
-Govt used media to spread rumours of NUM corruption > stories of violence against the police
-Divide and Conquer > govt promised the miners of Nottinghamshire that their jobs and pits were safe
When was the Battle of Orgreave?
18th June 1984
What was the Battle of Orgreave?
-Confrontation between 5000 miners and 5000 police
-The police charged Miners while on horseback with truncheons drawn
-The miners hurled rocks, bricks and bottles at the police
-51 Picketers and 72 police were injured
-Events were misrepresented by the BBC > footage showed the police being provoked by Miner violence
- Full footage had shown the police attacking a peaceful picket line, with the miners fighting back after this initial attack
Which areas were on strike on the 6th of March?
-Miners from Yorkshire and Scottish pits
Which areas were on strike by the 12th of March?
-Half the country’s miners were on strike > 187,000 > 50% of the workforce
What happened the 29th of March during the strikes?
-Transport unions banned the movement of coal on trucks and rail
What happened on the 12th of April during the strikes?
-Strike Declared official by the NUM despite the lack of a national ballot
what happened by May 1984 during the strike?
-some 40,000 striking miners had marched to Nottinghamshire
-80% miners were on strike
How was the Miners strike defeated by the Thatcher govt?
-September 1984 > The high court ruled the strike illegal > Striking miners refused benefits > NUM fined and refused to pay - £5million of their assets were siezed
-From September 1984> some miners returned to work > NCB began offering bonuses and higher wages for those who returned to work
What happened on the 3rd March 1985 during the strikes?
-NUM voted 98 to 91 to end the strike and go back to work
What happened on the 5th of march 1985 during the strikes?
-Miners went back to work > all of Scargills predictions about pit closure plans were proved correct
What was the impact of the Miners strike 1984-1985?
-NUM membership dropped from 250,000 in 1979 to 100,000 by 1987
-The union ended the strike virtually bankrupt by the end of it
-The miners strike divided opinions about Thatcher more than any other issue
-Destroyed livelihoods and historic communities
What significant quote did Thatcher say about the Miners striking?
‘we had to fight the enemy without( abroad) in the Falklands…. should be aware of the enemy within’ > compares to the unions to fascist dictator in Argentina
How many police turned up to keep the yorkshire picketers away?
3000
Why was Scargill controversial in his approach to the miners strike?
He should’ve done a national strike ballot > he would’ve achieved a large enough majority
What were Scargill’s aims through the miner strikes?
To bring down the conservative government like they had done to Heath’s government
When did Supply side economics begin under Thatcher?
mid 1980s
What did Supply side economics aim to do?
-aimed to correct the artificial demand created by Keynesian economics
-aimed to incentivise people to work harder mainly through wages
When was British Telecom Privatised?
1984
What percentage of British Telecom shares were sold on the London stock exchange?
50%
How many people bought shares of British Telecom?
2million
What were the positives of privatising british Telecom?
-before privatisation it could take upto 3months for a BT engineer to visit your home and install a phone > this reduced
-Prices fell, telephones were available on demand and the no. of working public telephone boxes increased
What was the ‘Big Bang’?
the Deregulation of the Stock Exchange
When was the ‘Big Bang’?
1986
What was achieved through deregulation of the stock exchange?
-Start of the financial sector forming a major part of the British economy
-London switched from face-to-face share dealing to electronic trading
-London became a draw for american investment banks
-Believed to have created 1,500 millionaires
What was the Housing Act of 1980?
-gave tenants of council homes of more than 3 years the right to buy their home at a discounted price
What was the Right to Buy discount by 1988?
44%
By 1997 how many council dwellings had been sold off due to the RTB scheme?
1.7million
What did the proportion of homes that were occupied by owner increase to between 1979 and 1989?
55% to 67%
Who was Sinn Fein?
-Political party in NI
-Republican, social democracy
-Gerry Adams was leader from 1983
Who was Gerry Adams affiliated with?
the IRA
What strategy did Sinn Fein use when campaigning?
‘Twin-Track strategy’ > using the armalite and the ballot box
What signifficant event during the troubles before Thatcher was Pm impacted Thatcher’s approach?
-Assasination of Airey Neave > Shadow secretary of state for NI
What was signifficant about the assasination of Airey Neave?
-Was at the HOC > car bomb
-Targeted British security
-Targets home of deomocracy
-Media interests increase > attack on British soil
-Thatcher lost a close friend and advisor > hardened her view
-IRA > murderers and criminals
What was Thatcher’s stance on NI?
-Unionist > anti-republican
-Less willing to let the republic have a say in NI matters
When was the assasination of Lord Mountbatten?
August 1979
What was signifficant about the assasination of Lord Mountbatten?
He was a beloved member of the royal Family
How did the IRA respond to the assasination of Lord Mountbatten?
-Called it an ‘execution’ > wanted this to be a sign for the british to leave NI
What was signifficant about the Maze Prison : H block?
The dirty protest led to hunger strikes
When did Bobby sands go on Hunger strike?
March 1981
How did Sands organise the hunger strikes?
-Believed that other prisoners would go on hunger strike at staggered intervals > deteriorating over 7months
What were the H block hunger strikes a continuation of?
The 1976-1978 Dirty protests
Who was the leader of the 1981 hunger strikes?
Bobby Sands
What happened in 1981 regarding a NI by-election?
-Bobby Sands was nominated as the nationalist “Anti H-block political prisoner’ candidate
-Sands won the by-election from within prison > died just a moth after he became MP
What did Bobby Sand’s death prompt?
-Days of rioting in nationalist areas oh NI > more than 100,000 people attended his funeral
What was Parliament’s reaction to Bobby Sands By-election win in 1981?
-New legislation > bar convicted felons from standing for election > as a result another hunger striker could not be elected
What bombing took place in 1984?
The Brighton Hotel Bombing
What was going on at the time of the brighton bombing?
-Conservative conference
How many deaths were as a result of the Brighton Hotel Bombing?
5 > Norman Tebbit died
What did Thatcher do the day after the Brighton Hotel Bombing?
-She held the conservative party conference on time > presented conservative party unity
What was signifficant about Thatcher’s speech at the 1984 conservative party confeernce?
She exclaimed that ‘Democracy will prevai’
When was the Anglo-Irish agreement?
1985
What was the Anglo-Irish agreement?
-Thatcher attempt to achieve security
-irish govt would have an advisory role in NI > security, intelligence and economics
Who influenced Thatchers decision to sign the Anglo-Irish agreement?
-Ragen > ‘The American’s made me do it’
What was the backlash to the Anglo-Irish agreement?
-200,000 protested in Belfast
-Jeopridised Thatchers relationship with the unionists
What did Ian Paisley say in response to the Anglo-Irish agreement?
‘Where do terrorists operate from ? From the Irish Republic……… We say never, never, never, never’
