90s - Fall of Thatcher and Rise of Major

Question 1

When was the stock market crash under Thatcher, and what was this caused by?

Answer 1

1987 as a ramification of the 1986 deregulation Big Bang

Question 2

What was Lawson’s response to the 1987 crash?

Answer 2

His 1988 budget led to rapid economic expansion in the ‘Lawson Boom’, but this resulted in a BOP issue.

Question 3

What was inflation in 1990?

Answer 3

10.9%, higher than when Thatcher took office.

Question 4

Which safe Conservative seat was lost in a by-election in October 1990?

Answer 4

Eastbourne to the Liberals.

Question 5

What was Thatchers economic shift in 1989 that contributed to FOT?

Answer 5

Introduced of the poll tax, and after the March 1990 riot her popularity in opinion polls fell sharply.

Question 6

What was the minister resignation that contributed to Thatcher’s demise in 1990?

Answer 6

Geoffrey Howe

Question 7

What did Howe’s resignation act as a catalyst for?

Answer 7

Heseltine to announce a leadership challenge, and after failing to win on the first ballot she resigned as PM.

Question 8

What were the numbers for the first ballot in Heseltine’s leadership challenge?

Answer 8

Thatcher 204, Heseltine 152 - not a sufficient enough majority to be successful.

Question 9

What was Major seen as by the Conservative Party, and what was his actual real aim?

Answer 9

Seen as a true-blooded Thatcherite, but was actually more concerned with party unity.

Question 10

Why did the Conservatives jump forward in the 1991 opinion polls?

Answer 10

‘honeymoon effect’ of a new government, but also Thatchers unpopularity had set the opinion polls low regardless.

Question 11

Why would uniting the Party under Major be difficult?

Answer 11

There was ongoing hostility towards Heseltine and a fierce determination amongst some to take revenge against those who ‘betrayed Maggie’.

Question 12

When did Major abolish the poll tax?

Answer 12

November 1991, he didn’t do this immediately as he risked splitting the Party.

Question 13

Where did the opinion polls place Cons, Lab & Lib in the run up to the 1992 Election?

Answer 13

Cons 29%, Lab 41%, Lib 15%

Question 14

What tactic of Majors was credited in the 1992 election?

Answer 14

Soapbox politics, making impromptu speeches on a soapbox in Luton.

Question 15

What were the Cons seen as a safe pair of hands for?

Answer 15

The best party to get the country out of the economic recession.

Question 16

What was the increase in unemployment from 1991-1992?

Answer 16

1.6M - 2.6M.

Question 17

How were homeowners trapped in ‘negative equity’?

Answer 17

They were having to repay mortgages greater than the current value of their homes. This affected traditional Tory voters.

Question 18

What was the increase in public spending in 1992 for?

Answer 18

To win votes, huge government borrowing was used to subsidise transport and increased NHS spending.

Question 19

What was Black Wednesday?

Answer 19

Majors U-turn to leave the ERM in September 1992

Question 20

What was the ERM?

Answer 20

Exchange-Rate Mechanism, where all currencies were stacked against the relatively stable Deutschmark, and required to keep a balance of 2.5 marks to the pound.

Question 21

What was the cause of Black Wednesday?

Answer 21

Too many people invested in the pound, causing people to then speculate against it and withdraw their money. Lamont set 15% interest rates to increase investment, but they had to withdraw because they fell too far below the 2.5:1 exchange rate.

Question 22

What were the economic ramifications of Black Wednesday?

Answer 22

Not as bad as feared, the economy stabilised and leaving the ERM left Br with more economic autonomy, and other benefits.

Question 23

What were the political ramifications of Black Wednesday?

Answer 23

Cons no longer trusted as a safe pair of economic hands, drop of support in opinion polls. Majors authority weakened and he was fiercely criticised by media. Lab shot ahead in polls.

Question 24

What did leaving the ERM prevent?

Answer 24

It prevented Britain having to keep high interest rates to protect the sterling and allowed exchange rates to float down, helping exports.

Question 25

What were the social ramifications of Black Wednesday?

Answer 25

Unemployment slowed and the housing market picked up.

Question 26

What past economic policies helped post-Black Wednesday economy?

Answer 26

Financial deregulation and flexible working practices, along with the American economy coming out of recession meant that the City was an economic powerhouse and the average person could afford to invest again.

Question 27

How had the economy improved by 1997?

Answer 27

Unemployment down, productivity up. Consumer spending up + car ownership increase. House prices rose.

Question 28

Why did the Cons government not get any credit for the economic recovery?

Answer 28

It was Majors decision to enter into the ERM in 1989 anyway, so it lacked the 'feel-good factor.

Question 29

What was the 1994 Scott Enquiry?

Answer 29

Set up by Major to investigate illegal arms dealing, and it proved that government ministers had broken the rules and been dishonest in allowing Matrix Churchill to supply arms to Iraq.

Question 30

What was the Cash-For-Questions affair?

Answer 30

Harrods owner, Mohamed Al-Fayed was paying Neil Hamilton in return for favours in Parliament, who consequently lost a public libel case over this.

Question 31

What was the speech Major gave in 1992 that backfired hugely?

Answer 31

'get back to basics, to good old fashioned British values of respect, dignity and honesty'.

Question 32

How did Major continue privatisation policies?

Answer 32

Coal industry privatised in 1994, railways in 1996. Government attempted to privatise the post office but failed. Private Finance Initiative were public-private initiatives that meant private companies would fund infrastructure and deliver public services.

Question 33

What was the Citizens Charter?

Answer 33

1991 - provide information about public services so people had realistic expectations and more power over them. Fore example, there would be more exams and schools had to publish results.

Question 34

What was the Cones Hotline?

Answer 34

Part of the citizens charter - a phone number motorists could all if motorway lines were closed off. Closed after 20,000 calls in 1994.

Question 35

How did pit closures continue under Heseltine?

Answer 35

In 1991 he closed 31 more. Many of these were in Nottinghamshire, who supported Thatcher against Scargill so the public outcry forced Heseltine to U-turn. The pits eventually closed in 1996.

Question 36

What health crisis did Major also have to deal with?

Answer 36

Mad Cow Disease - recognised as a threat to human health in 1996 - British beef banned in Europe.

Question 37

Why did Nigel Lawson resign in 1989?

Answer 37

Thatcher was taking advice from Professor Alan Walters, who had contradictory ideas to her Chancellor, Lawson.

Question 38

How did Thatcher alienate Geoffrey Howe?

Answer 38

Moved him from Foreign Secretary to Employment Secretary, he resigned a year later.

Question 38

How did Thatcher alienate Geoffrey Howe?

Answer 38

Moved him from Foreign Secretary to Employment Secretary, he resigned a year later. This was over her style of leadership.

Question 39

What did right-wing Cons campaign for?

Answer 39

More radical social policies, and many saw an opportunity to advance leadership claims. Eurosceptics saw an opening to push the government out of the EU, and the divisions ended up drowning out achievements.

Question 40

In the summer of 1995, what did Major call?

Answer 40

A leadership election, 'put up or shut up'.

Question 41

What did Major do immediately pre-leadership vote that won him the vote?

Answer 41

Appointed Heseltine his deputy PM, who made his support publicly known and he won 221-89. However, between Redwood's 89 and 22 abstinences, Major had over 100 non-supporters in the Party.

Question 42

How did Thatcher increase Major criticism?

Answer 42

She demanded a referendum on Europe, and her 1993 memoirs were lukewarm on Major. She supported Redwood in the 1995 leadership vote and showed Blair more support than Major in 1997.