Economics/Industrial (1979-87)

Question 1

4

Describe Howe’s June 1979 budget

Answer 1

• Public spending reduced by £4bn

Question 2

3

Describe the economy by 1980

Answer 2

• Inflation stood at 22% in 1980
• Unemployment reached 2m

Question 3

5

economy in 1981

Answer 3

• from 1979-81, British GDP fell by 2.5%
• return of stagflation

Question 4

Describe privatisations in Thatcher’s first term

Answer 4

• BP sold in 1979
• British Aerospace sold in 1981

Question 5

2

Describe the Lawson’s deregulation policy (1983-87)

Answer 5

• Big Bang 1986
• Proposed relaxation of Sunday Trading laws (defeated)

Question 6

5

Describe the Big Bang 1986

Answer 6

• Reform of London Stock Exchange
• Opened up trading to wider financial institutions, notably foreign banks

Question 7

3

Describe the positives of economy by 1987

Answer 7

• Easy credit availability drove up household consumption boom, especially in South
• Average annual growth rate of 4%
  Inflation continued to fall

Question 8

6

Describe the negatives of economy by 1987

Answer 8

• by 1985, the poorest 20% held only 5% of national wealth
• Unemployment reached 3.3m in April 1985

Question 9

4

Describe the effects of the Employment Act 1980 and 1982

Answer 9

• 4 m days lost to striking in 1981 compared to average of 13m in 1970s

Question 10

2

Describe shifts in employment 1979-87

Answer 10

• Technological advances and recession 1980-82 had reduced demand for unskilled labour
• between 1978-85, the number of semi-skilled/unskilled jobs reduced by 1m