Why did Thatcher resign in November 1990?

Question 1

What did Thatcher calculate and what did she think?

Answer 1

That 1/2 of the local electorate didn’t pay rates

That there would be more interest in local politics and controlling local council spending if more people paid local taxes

Question 2

What was the result of the rise in house prices?

Answer 2

Many people lived in homes which were worth a lot but they themselves had little money

Question 3

What did the Local Government Finance Act of 1988 introduce?

Answer 3

The Community Charge (poll tax) which replaced the rates with a flat-rate tax on every individual

Question 4

What was the reaction from some members of the Cabinet and several Tory MPs?

Answer 4

They opposed the poll tax because they believed it would be hugely unpopular

Question 5

What happened in 1989?

Answer 5

Poll tax was first introduced in Scotland and the SNP encouraged millions of Scots to refuse to pay for it

Question 6

What happened on 31 March 1990?

Answer 6

Massive demonstration in London

Question 7

What did Thatcher decide to do and what did it suggest?

Answer 7

Press ahead despite warnings

That her style of government was increasingly dictatorial and alienating voters

Question 8

What happened in October 1988?

Answer 8

A stock market crash wiped 24% off share prices

Question 9

What did Lawson do in 1988?

Answer 9

Cut standard rate income tax from 29p to 25p and cut the top rate to 40p

Question 10

What happened to inflation in 1989 and what did this trigger?

Answer 10

Rose to 8.9%

A 20% increase in house prices

Question 11

What did Lawson try to do?

Answer 11

Control inflation by raising interest rates, which were 15% in October 1989

Question 12

What began to look unconvincing?

Answer 12

Her claim to have wrought an economic miracle

Question 13

What did Thatcher accept in 1986 but what did she later feel?

Answer 13

The Single European Act

Regretted it as it committed the member states to work towards a closer monetary/political union

Question 14

What did Thatcher say in a speech in 1988?

Answer 14

Frontiers of the state had been ‘re-imposed… with a European superstate exercising a new dominance’

Question 15

What happened in 1989?

Answer 15

Howe and Lawson were keen for Britain to join the ERM which aimed to minimise exchange rate fluctuations

Thatcher disagreed, as did Alan Walters, her economic adviser

Question 16

What happened in June 1989?

Answer 16

Howe demoted to Foreign Office and Deputy PM

Question 17

What happened in October 1989?

Answer 17

Lawson resigned, exasperated by Thatcher and her reliance on the advice of Walters

Question 18

What did the rift do?

Answer 18

Weakened her authority, making her more isolated as she had alienated important allies

Question 19

What happened in October 1990?

Answer 19

Major had persuaded Thatcher to join the ERM on the advice that membership would combat inflation and reduce interest rates

Question 20

What did she do regarding Europe and what was the impact?

Answer 20

Denounced plans for the further integration of Europe with ‘no, no, no’

Delighted the Eurosceptics but frustrated her ministers

Question 21

What happened in April 1989?

Answer 21

In a by-election in the Vale of Glamorgan, Labour overturned a 6200 Tory majority and won by 6000 votes

Question 22

What happened in June 1989?

Answer 22

In elections to the European parliament, the Conservatives won 33.5% of the vote to Labour’s 38.7%

Question 23

What happened in March 1990?

Answer 23

In the Mid-Staffordshire by-election of March 1990, a Conservative majority of 14,600 became a Labour majority of 9400

Question 24

What happened by June 1990?

Answer 24

Labour was 16 points ahead and many feared that the Conservatives would lose the next election if Thatcher remained

Question 25

What happened in 1989 regarding leadership?

Answer 25

Meyer won 33 votes in a leadership contest and 30 MPs abstained

Indicated that Thatcher would be in difficulties if challenged by a credible candidate

Question 26

What triggered her fall and why?

Answer 26

Howe’s resignation in 1990 (unexpected)

He had endured years of bully and disliked her policy towards Europe

Question 27

What happened on 13 November 1990?

Answer 27

Howe said in his resignation speech ‘the time has come for others to consider their own response to the tragic conflict of loyalties’

Question 28

What was the government?

Answer 28

Divided

Question 29

What did Heseltine take Howe’s speech as and what did he do the following day?

Answer 29

A cue to challenge Thatcher

Announced his candidature for the leadership of the party

Question 30

What was the outcome of the contest?

Answer 30

Thatcher won by 56%, but not by a large enough margin to avoid a second round of voting

Question 31

What did she try to do?

Answer 31

Drum up support but was advised that she could not win

Question 32

What happened on 28 November 1990?

Answer 32

Resigned and was replaced by Major