Who was Major and why did he win 1992 election? Flashcards
What problems did the British government face by 1992?
- Bitter internal divisions
- Economy was in a recession
Describe the relationship between Major and Lamont (Chancellor of the Exchequer)
- A sense of distrust and disunity
- They disagreed over the economy: Major wanted to stay in ERM and Lamont wanted to devalue the pound
Why was there a recession in Britain?
- ERM was increasing inflation - high unemployment and businesses going bust
What was Major determined not to do?
- Devalue the sterling as he wanted to make it stronger
Why did Major write to German Chancellor Helmut Kohl?
- To make deutshmark go down = lower German interest rates
What triggered mass selling of the pound on 16th September 1992? How did Major intervene to prevent this?
- Attitude of German bank/ Chancellor that called for the devaluation of the £
- Major wanted to raise interest rates to keep the value of the pound
Describe the differences in views between John Major and Norman Lamont on 16th September 1992
- Struggled to communicate with each other and Major seemed unbothered despite the crisis
What was the highest interest rates were raised on Black Wednesday
-15%
What was announced at 7.30 on Black Wednesday?
- Announced the pounds suspension from the exchange rate mechanism
What was the impact on Black Wednesday on Major’s government and what was the impact on the economy?
- Lost 4 billion pounds which is equivalent to £70 from every person
- It was a turning point for Major
How did the media respond?
- Shifted to blame Major and fabricated stories
Describe the atmosphere at the Conservative Party Conference in 1992. How did Norman Tebbit address John Major? How did Thatcher attack Major?
- Norman Tebbit criticised Major’s European policy and ERM - devestating attack
- Thatcher accused Major of damaging Britains constitutional freedom with the Maastricht treaty
What was announced shortly afterwards that came as a huge blow to working class communities? How did Major justify this?
- The closure of pits
- Major justified it by giving money to mines after their redundancies
What part did Thatcher and Tebbit have in creating a division over Europe?
Thatcher encouraged back benchers to vote against the government
What impact did negative media coverage have on John Major?
- Constant leaks in the press
- Constant criticism - causing Major upset
What announcements were made in the budget to control public spending? What impact did this have?
- Raise tax (a policy they don’t like to follow)
What did Norman Lamont say about Major’s government in his resignation speech?
- Damaged Major (reputation and standing)
How did Major threaten to rebel MPs in order to pass the Maastricht Treaty?
-“if you don’t back me, you sack me” so they backed Major because they believed they would lose a general election
What similarities and differences can you see between Thatcher and Major’s government?
- Major - more laid back, calm, moderate, mild, delays the Maastrichts treaty
- Thatcher - mote forceful, handbag diplomacy, abrasive
- Major + Thatcher - both believed in their own policies
What do you think will be the biggest challenges for Major for the rest of his time as Prime Minister?
- Disunity/ support
- Divisions over Europe
- Inflation/ devaluation of the pound
What do you think will be the impact of Major’s government in the long term?
- negative press
- economic policy
- Divisions over Europe
