Towards a new consensus, 1987-97 Flashcards
The fall of Thatcher and the rise of Major, the realignment of the Labour Party, social issues and foreign affairs
List some economic reasons for Thatcher’s fall
1987 stock market crash after ‘Big Bang’ rescued by Lawson Boom but caused BoP problem and inflation was 10.9% by 1990.
List some political reasons for Thatcher’s fall
Many Conservative MPs feared defeat after loss of ultra-safe seat Eastbourne to Liberals in Oct 1990 by-election.
Poll tax, advised to drop it and popularity fell after March 1990 riots.
Divisions in Tory party compared to Kinnock and Smith unity.
Howe’s resignation, Heseltine leadership challenge
When was poll tax scrapped?
What had been lost and what had been gained?
November 1991 moved to council tax.
Lost £1.5bn but allowed Major to blame Thatcher for Poll Tax.
Why did Major win the 1992 election?
Called at last possible moment. Were down in opinion polls (29% to Labour’s 41%) but Major ran good campaign, ‘soapbox’ eg. Luton. Many did not feel Labour had reformed enough.
What economic problems did Major face before the 1992 election?
Unemployment up from 1.6m in 1991 to 2.6m in 1992. Negative equity, many homes repossessed including traditional Tory voters, high public spending before election meant borrowing for transport subsidies and NHS.
When did Britain join ERM?
When was Black Wednesday?
How did the Chancellor try and combat it?
Joined in 1990
16th September 1992 was Black Wednesday.
Lamont increased interest rates from 10%, to 12%, to 15% but ended up announcing decision to leave ERM live on TV.
What were the effects of Black Wednesday?
Ruined Conservative’s reputation for being good at managing the economy.
Economic benefits though, stopped high interest rates that were protecting sterling, and helped exports as exchange rate went down. Unemployment slowed and the housing market went up.
What scandals damaged the reputation of Major’s government?
More than a dozen sex scandals involving MPs having extramarital affairs including two cabinet ministers, David Mellor and Tim Yeo, both forced to resign.
What corruption scandals damaged the reputation of Major’s government?
1994 Scott Enquiry investigated illegal arms dealing, government ministers had broken rules and been ‘economical with the truth’ when letting Matrix Churchill supply arms to Iraq. Leading Conservatives, Jeffrey Archer and Jonathan Aitken convicted of perjury. ‘Cash for questions’ kept in news until 1997 election (Neil Hamilton accepted money for lobbying).
What satire damaged the reputation of Major’s government?
Satire, Private Eye had the Adrian Mole spoof The Secret Diary of John Major aged 47 and three-quarters. Spitting Image as boring. Image of Major as well meaning but inadequate leader.
What evidences the continuation of privatisation?
Coal in 1994, rail in 1996 and attempt to privatise Post Office but stopped due to public concern
What was set up to help fund infrastructure improvements?
Private Finance Initiative (PFI) were private-public partnerships meant private companies would fund infrastructure improvements and deliver services that the State would pay over length of contract.
What was ridiculed by satire in 1991 but had good intentions?
Citizen’s Charter in 1991 attempted to give public service users more power over quality of services by providing more info on standards to expect. More testing and schools publish results. ‘Cones hotline’- a phone number motorists could call if motorway lanes were closed with no sign of roadworks- became satire target.
What was the governments action towards mining?
Pit closures. 1991 Heseltine announced 31 more closures including Nottinghamshire, loyal during 1984 strike. Short term U-turn.
What crisis meant that British beef was banned in Europe?
BSE crisis, ‘mad cow disease’. Identified in 1980s, but considered threat to humans in 1996.
What policy towards NI was widely criticised?
‘Shoot to kill’ under scrutiny after 3 IRA members killed by SAS in 1988 and high profile miscarriages of justice eg. Birmingham Six and Guildford Four.
What political breakthrough was achieved by Major towards Northern Ireland?
What did it lead to and when was this broken?
Downing Street Declaration in 1993 with Taoiseach Reynolds.
IRA ceasefire in 1994 but Canary Wharf and Manchester bombed in 1996
Why did Thatcher’s chancellor Lawson resign?
1989 after use of Alan Walters as economic advisor.