Why Did Thatcher Resign As Prime Minister In November 1990 Flashcards
What were the 4 interconnected reasons for Thatcher’s fall from power?
The impact of the poll tax
Economic difficulties
Divisions within the cabinet over policy towards Europe
Her growing personal isolation and unpopularity
What system did Thatcher feel was ‘manifestly unfair’?
‘The rates’, where owners of property and business pay tax as the principle source of local government, lading to half the electorate not paying
Why did many people in the late 80s live in homes that were worth a lot, but themselves had little money?
The rise in house prices
What act introduced the Community Charge?
The Local Government Finance Act of 1988
Which party encourage millions of Scots to refuse to pay the Community Charge when it was first introduced in Scotland in 1989?
SNP
How much was wiped off share prices in a stock market crash in October 1987?
24%
Why did the Chancellor Nigel Lawson reduce income taxes in the 1988 budget?
Because he through the stock market crash might trigger a recession
What was the impact of Lawson’s 1988 budget?
The reduced income taxes stimulated a consumer spending boom which pushed prices, by June 1989 inflation was at 8.3% trying to control inflation Lawson raised interested rates increasing inflation to 15% by October 1989, with new home owners paying heavily after being encouraged to buy
What act did Thatcher expect believing it was an essential step towards the kind of free market in Europe she believed in?
Single European Act of 1986, though she regretted doing so because it committed the members states to work towards closer monetary and political union, something she did not want
What were Lawson and Foreign Secretary Howe keen for Britain to join?
The Exchange Rate Mechanism (ERM)
Where did Thatcher demote Foreign Security Howe to in June 1989?
The meaningless title of deputy prime minister
Why did Lawson resign as chancellor in October 1989?
he was resentful of her reliance on the advice of her economic adviser, Alan Walters and exasperated by Thatcher’s resistance
Who was the new chancellor of the exchequer and persuade Thatcher to make Britain join the ERM in October 1990?
John Major
What is some examples of the growing unpopularity of Thatcher government?
In April 1989, a by-election in the Vale of Glamorgan, Labour overburden a 6200 Tory majority an down by 6000 votes
In the June 1989 European Parliament elections the Conservatives won 33.5% compared to Labours 38.7%
By June 1990 Labour was 16 points ahead in the opinion polls
How many votes did Anthony Meyer, a little known Conservative MP, win when he challenged Thatcher in a Thatcher for the leadership in Autumn 1989?
33 MPs, with a further 30-odd abstaining
