Thatcher and the end of consensus 1979-97 Flashcards
What were Thatcher’s main economic policies?
Monetarism: aimed to reduce inflation by controlling supply of money
Privatisation: sell off national industries
Free-market economics: encouraged deregulation (e.g. Big Bang of 1986 deregulating London’s financial markets)
Examples of privatised companies under Thatcher:
British Telecom (1984), British Gas (1986), British Airways (1987)
How effective were Thatcher’s main economic policies?
Monetarism: inflation fell from 13.4% in 1980 to 4.6% in 1983, but unemployment peaked at 3.3 million because of high interest rates and reduced public spending
Privatisation: raised £19 billion by 1990 and widened share ownership to 11 million
Free-market economics: boosted London as a global financial hub but increased inequality
What caused the 1984 Miners’ strike?
Thatcher’s decision to close unprofitable coal pits (20 closed by 1984), which led to the National Coal Board planning to cut 20,000 mining jobs
What was the key moment of the Miners’ strike?
Police confrontations at Orgreave in June 1984- 5000 miners and 8000 police
Who and what organisation led the Miners’ strike 1984?
Arthur Scargill and the NUM
What was the result of the 1984 Miners’ strike?
Collapsed in March 1985
Why did Thatcher win the 1979 election?
Labour weakness-Winter of Discontent 1978-79, inflation 25% in 1975
Tory campaign- promised to decrease union power and inflation and make free market reforms
1979 election result
339 Tory
269 Labour
Why did Thatcher win the 1983 election?
Labour weakness- divided under Michael Foot, out of touch policies e.g. nuclear disarmament and nationalisation, rise of SDP-Liberal Alliance split left-wing vote
Conservative strength- Victory in Falklands war 1982 increased Thatcher’s approval rating to 59%
1983 election result
397 Tory
209 Labour
Why did Thatcher win the 1987 election?
Labour weakness: New Labour leader Neil Kinnoch criticised important left-wingers, bad leadership style
Conservative strength: Populist policies and privatisation still relevant to electorate, GDP grew by 4.2% in 1987, Right to Buy scheme sold 2 million council houses
1987 election result
376 Tory
229 Labour
What was the Right to Buy scheme and how successful was it?
1980 scheme allowing council tenants to buy their homes at a discount
2 mil homes sold by 1990 but reduced the social housing stock which worsened housing crisis for low-income families
What were Thatcher’s education reforms and how successful were they?
O-Levels and CSEs changed to GCSEs 1986, introduced national curriculum 1988, created LMS allowing schools to control their budgets
Focus on standards and accountability were popular but teachers and unions opposed many reforms (especially centralised control and narrowing of curriculum)
What was the poll tax and how successful was it?
1989 replaced property based rates with a flat-rate tax
Widespread unpopularity, led to Trafalgar square riots in March 1990, approval ratings dropped to 23%
How did economic challenges contribute to Thatcher’s fall from power?
Entered recession in 1990, unemployment increased to 7%, inflation 10%, house repossessions increased
How did cabinet divisions contribute to Thatcher’s fall from power?
Alienated key cabinet members e.g. Lawson and Howe in 1989 over Thatcher’s refusal to join the ERM, Meyer’s leadership challenge in 1989 (didn’t win but weakened Thatcher), Howe’s resignation speech 13th November 1990
What was involved in the 1984 Trade Union Act?
Unions required to hold secret ballots before launching industrial action
Why did Blair win the 1997 election?
Conservative weakness- Tory divisions over Europe, Maastricht Treaty Dec 1991, Black Wednesday 1992 led to Britain withdrawing from the ERM
Labour strength- New Labour under Blair reconciled the party to Thatcher’s reforms and abolished Clause IV (nationalism) from party constitution. Won media support- Rupert Murdoch the Sun. Blair young and optimistic
1997 election result
417 Labour
165 Tory
