John Major 1990-97 Flashcards
One key reason why John Major’s rise to leadership
Thatcherites saw him as ‘one of them’
When was the poll tax abandoned?
November 1991
3 key things that happened in John Majors first term (1990-1992)
- removal of poll tax 1991
-Gulf War: supported President Bush in removing the Iraqis from Kuwait 1991
-Signed the Maastricht treaty (dec 1991) which committed Britain into greater integration in Europe
What did the option polls place the conservatives as in the 1992 election?
29% compared to labours 41%
How did John Major run his electoral campaign in 1992
- won a lot of respect for old fashioned ‘soapbox’ politics, making impromptu speeches in tows such as luton on top of a soapbox
How did labour lose the 1992 election
- Kinnock ‘we’re alright!’ Speech did not go down well with supporters
-John Smith’s ‘alternative budget’ relentlessly attacked by torries which gave voters second thoughts about wisdom of labour - Legacy of Thatcher still apparent with labour shifting to the left e.g people could no afford foreign holidays
- Not seen as trustworthy as Major
Effect on the Lawson boom on house prices
House prices rose rapidly.
Contributed to a feeling of prosperity.
Rising prices led to people doing anything to buy a property.
Situation after the Lawson boom in early 1990s
House prices begin to fall.
Many people were left owning a property less than the loan they had taken out (negative equity).
Figure of houses in negative equity at start of 1992 compared to end of 1992
300,000
To
900,000
When did Britain join the ERM
October 1990
When was the run on the pound
Wednesday 16 September 1992
(Black Wednesday)
What were the events of Black Wednesday
Run on the pound
Bank of England puts interest rates up to 15% to defend its international valuation
Government forced to leave the ERM, devaluing the currency.
Consequences of Black Wednesday
- Economy picks up
-lower unemployment - lower inflation
(Not everyone agrees this was due to leaving the ERM) - Rise in interest rates led to increased mortgages- sinking government popularity
Economic situation by 1997
- Car ownership increased, negative equity a thing of the past but people reluctant to credit major for this due to Black Wednesday
What was ‘cash for questions’
MPs were paid by commercial businesses to ask questions in the House of Commons.
Neil Hamilton most accused