Towards a New Consensus 1987-1997 Flashcards
What factors led to the fall of Thatcher in 1990?
Inflation rising to 10.9%
Balance of Payments problems
Stock market crash
Loss of safe seats, like Eastbourne in by-elections
Unpopularity of poll tax/community charge
Poor opinion polls
Thatchers dominant leadership style
Conservative Party divisions over Europe
Recovery of Labour Party
Resignations of Lawson and Howe
Heseltine’s criticism and popularity
Conservative leadership election rules
Loss of support of cabinet
Who replaced Thatchet as PM?
John Major
What did Major do to address the Conservative Party divisions?
Favoured a middle way on Europe - Britain would be ‘at the very heart of Europe’
Replaced unpopular community charge with a Council tax
What factors influenced the Conservative election campaign 1992?
POSITIVE
Long election campaign- time for polls to change
Majors took majority consensus approach on policies - like poll tax replacement
Majors campaign style
Conservative economic reputation
Fears about Labour and Kinnock as a PM
Press support for the Conservatives
NEGATIVE
Opinion polls showed unpopular
Splits within Conservative Party
Major linked to Thatcher’s government
Economic problems that had affected traditional Conservative voters
Changes within the Labour Party
What economic problems did Major inherit?
Declining manufacturing output
High interest rates
High inflation
Rising unemployment
Falling house prices -negative equity
What was Black Wednesday, 16th September 1992
Britain joined exchange rate mechanism in 1990 in attempt to lower inflation- could only fluctuate a small amount from agreed exchange rate with the German Mark
September 1992 investors felt sterling overpriced and started to sell it
Bank of England bought sterling to maintain its value + government raised interest rates to 15% to raise value of sterling
Both measures failed - sterling forced to leave ERM and to devalue
What were the political consequences of sterling leaving the ERM?
Humiliation for Major government
Loss of reputation for economic competence
Loss of press support
What were the economic consequences of sterling leaving the ERM?
Interest rates could be lowered - helping businesses to borrow and invest
Cheaper pound made it easier for British exporters to sell goods and services
Unemployment fell
House prices rose
Consumer spending rose
Britain was well placed to benefit from upswing in economy
Other than Black Wednesday what else helped to weaken Major’s government?
Political sleaze
Scandals
Satire
What political sleaze impacted Major?
1994 Scott enquiry into illegal arms dealing by Matrix Churchill - government ministers broken rules and not told the full truth
Leading Conservatives Jonathan Aitkin and Jeffery Archer convicted of perjury in 1999 and 2001
Cash for questions - Conservative MPs accused of taking money for questions in parliament in 1994. Neil Hamilton lost a libel case but refused to resign - Martin Bell an independent candidate stood against him in 1997 election and won
What scandals affected Major?
More than12 sex scandals involving MPs
Resignation of 2 cabinet ministers after extramarital affairs
Damaging- as Conservatives had launched their ‘Back to basics’ campaign at 1993 Conservative Party conference
What satire targeted Major?
Private eye - Adrian Mole spoof- The secret diary of John Major aged 47 and three- quarters
Steve Bell cartoons - grey superhero wearing his underpants on top of his trousers
What policies of Major’s were criticised?
Coal pit closures inc Nottinghamshire- annoyed those who remembered how Nottinghamshire miners had supported Thatcher during miners strike
Citizens charter 1991
Attempted privatisation of the post office - abandoned due to unpopularity
Privatisation of Coal industry in 1994
Privatisation of Railways in 1996
Private Finance Schemes (PFI)
Recognition of BSE as a threat to human health 1996
What was Major’s approach to Northern Ireland?
Peace process started in 1993
IRA had indicated it might be ready to stop campaign of violence/Unionists tended to trust Conservatives would protect their interests
Major had a close relationship with the Irish Taoiseach Albert Reynolds
The US president encouraged the IRA to give up violence
Led to 1993 Downing Street Declaration made by Major and Reynolds - restarted self- determination and principle of consent in deciding future of Northern Ireland
1994 IRA announced ceasefire
1994 Loyalist paramilitaries also announced ceasefire
Slow progress. Unionists didn’t trust the Republicans. 1996 IRA ended ceasefire- bombing both London and Manchester
Large divisions in Conservative Party by end of 80s - what were the main divisions?
Divided on Leadership style
Europe
Other policies
How were the Conservatives divided on their leaders end of 80s early 90s?
Thatcher aloof and not listening(Poll tax)
Thatcher alienating key ministers - Lawson and Howe
Major seen as weak and inept - Black Wednesday and Satirical image
Major unable to quieten criticism form within party: ‘bastards’ rumoured to be Portillo, Lilley and Redwood in the cabinet
How were the Conservatives divided on Europe late 80s and early 90s?
Thatcher and some of her supporters became more Eurosceltic
Growth of Eurosceptics in the party
Demand for a referendum on the Maastricht treaty
Difficulty in ratifying Maastricht Treaty in Parliament
What other policies did the Conservatives divide over in late 80s and early 90s?
Some wanted more radical social policies
Some wanted further privatisations
Some on Right feared a move away from Thatcherism; poll tax change and backing down on post office privatisation
How did Major force the party to unite?
Resigned in June 1995, prompting a leadership contest. ‘Back me or sack me’
Redwood stood against Major - supported by Eurosceptics and die hard Thatcher supporters
Heseltine and Portillo agreed to support Major
Major won by 218 votes to Redwood’s 89
Big victory- but also showed he didn’t have the support of a significant number in the minority
What happened to the Labour Party between1987 and 1992?
Modernised throughout this period
Failure to win 1992 election led to resignation of Neil Kinnock- replaced with John Smith
After Smith’s death in 1994, Tony Blair became leader
Rebranded Labour as New Labour
New Labour won a landslide victory at the 1997 election
LABOUR 87-92
What happened under Kinnock?
After election defeat in 87 Kinnock reformed Labour
Peter Mandelson, became known as Labour’s spin doctor, became Director of Communications for Kinnock in 1985
Party was changed and made more professional
John Smith became Shadow Chancellor in 1987 - a moderate image
Policy review launched in 1987 led to ditching of many unpopular policies - withdrawal from EEC, unilateral nuclear disarmament, higher taxes
In 1989 Kinnock ended Labour’s support for closed shop trade union agreements
Labour overtook Conservatives in the polls at end of Thatchers term and even when Major came to power, how did they lose the 1992 election?
Kinnock took some of blame
Seen as being over-confident at the Sheffield election rally - shortly before the election and voters found it difficult to see him as PM
What can you tell me about John Smith 1992-1994?
Seen as competent and trusted to run economy
Abolished trade union block vote (Trade union leaders used to vote on behalf of members, usually at Labour Party conferences)
Introduced ‘One member one vote’ for parliament candidates in 1993
Did not extend one member one vote to conference motions that decided Labour policy
Seen as likely to defeat Conservatives after Black Wednesday - until died of heart attack in 1994
Who were the contenders to replace John Smith as leader of the Labour Party, after he died
Tony Blair and Gordon Brown
What was the dynamic between Blair and Brown
Both modernisers - Blair shared an office with Brown when first elected as an MP in 1983
Blair Shadow Home Secretary 1994
Brown Shadow Chancellor in 1994 - experienced and protege of Smith
Blair Agreed that he and not Brown would stand as leader to avoid split in modernisers vote
Brown, in exchange for stepping aside, would take on key policies and strategy - esp on economy
Blair Believed to have agreed to step down and handover to Brown at some point in the future
Strong pair - but Agreement about the leadership caused tension between Blair and Brown
What new Labour policies were there under Brown and Blair 87-97?
Clause IV rewritten in 1995 indicating acceptance of privitisation
Lose the image of Labour as a tax and spend party - Brown promised he would follow the Conservative Party spending plans.
How did Blair and Brown modernise the image of Labour?
Positioned the party as FRIENDLY TO BUSINESS and not just the party of trade unions
Blair appeared moderate and was attractive to Middle England - particularly with women and young voters
How did Labour change their campaign messaging 87-97?
More controlled
Blair’s press secretary, Alastair Campbell, worked hard to change relationship with press
Peter Mandelson controlled party communications- make sure consistent and coherent
