Thatcher’s economic and social policies

Question 1

What economic approach did Thatcher adopt, breaking with the post-war consensus?

Answer 1

Neoliberalism (1979)

Question 2

What was the post-war consensus that Thatcher rejected?

Answer 2

A Keynesian mixed economy including nationalization of key industries and negotiations with trade unions (1945-1979)

Question 3

What economic concept did Thatcher believe in to control inflation?

Answer 3

Monetarism (1979)

Question 4

How much had retail prices risen between 1973 and 1979?

Answer 4

They had doubled (1973-1979)

Question 5

What was the key principle of monetarism?

Answer 5

Reducing the money supply by cutting public spending (1979)

Question 6

By how much did Thatcher initially cut the civil service? (%)

Answer 6

5% (1979)

Question 7

How much was initially cut from public spending under Thatcher?

Answer 7

£500 million (1979)

Question 8

What was the inflation rate in 1980?

Answer 8

18% (1980)

Question 9

What was the inflation rate by 1983?

Answer 9

4.5% (1983)

Question 10

Who was Thatcher’s Chancellor of the Exchequer responsible for shifting taxation?

Answer 10

Geoffrey Howe (1979)

Question 11

How did taxation change under Geoffrey Howe?

Answer 11

Shift from direct to indirect taxation (1979)

Question 12

How much was VAT increased to in 1979?

Answer 12

From 8% to 15% (1979)

Question 13

By how much were petrol duties raised in 1979?

Answer 13

20p (1979)

Question 14

By how much were cigarette duties raised in 1979?

Answer 14

13p (1979)

Question 15

How much did the 1979 budget increase taxes overall?

Answer 15

£4bn (1979)

Question 16

By what percentage did manufacturing output fall due to monetarism?

Answer 16

14% (1979-1983)

Question 17

What happened to unemployment between 1979 and 1983?

Answer 17

It doubled to 3 million (1979-1983)

Question 18

What was the interest rate in 1979?

Answer 18

17% (1979)

Question 19

What major social unrest occurred as a reaction to Thatcher’s economic policies?

Answer 19

Riots in Brixton, London and Toxteth, Liverpool (1981)

Question 20

What was Thatcher’s approval rating by the end of 1981?

Answer 20

25% (1981)

Question 21

What natural resource helped cushion the UK economy during monetarism?

Answer 21

North Sea Oil (1980)

Question 22

How much of government revenue came from North Sea Oil?

Answer 22

10%, an estimated £70bn total (1980s)

Question 23

What was Britain’s status regarding oil by 1980?

Answer 23

A net exporter of oil (1980)

Question 24

What major economic policy was accelerated after the 1983 election?

Answer 24

Privatization (1983-1990)

Question 25

What was the first major company privatized under Thatcher?

Answer 25

British Petroleum (1979)

Question 26

When was British Aerospace privatized?

Answer 26

1981

Question 27

When was British Telecommunications (BT) privatized?

Answer 27

1984

Question 28

When was British Gas privatized?

Answer 28

1986

Question 29

When was British Airways privatized?

Answer 29

1987

Question 30

When was British Steel privatized?

Answer 30

1988

Question 31

What happened to Rolls Royce under Thatcher?

Answer 31

Re-privatized (1987)

Question 32

When were water companies privatized?

Answer 32

1989

Question 33

What was the concept behind encouraging the British public to buy shares?

Answer 33

A ‘property owning democracy’ (1980s)

Question 34

How many shareholders were there in Britain in 1979?

Answer 34

3 million (1979)

Question 35

How many shareholders were there in Britain by 1990?

Answer 35

11 million (1990)

Question 36

Who was the Chancellor of the Exchequer from 1983-1989?

Answer 36

Nigel Lawson (1983-1989)

Question 37

By how much was income tax reduced under Lawson?

Answer 37

From 29% to 25% (1983-1988)

Question 38

What was the top rate of tax reduced to by 1988?

Answer 38

40% (1988) from 60%

Question 39

What was the major deregulation act in 1986?

Answer 39

Financial Services Act (1986)

Question 40

What was the deregulation of the City of London called?

Answer 40

The ‘Big Bang’ (1986)

Question 41

What did the ‘Big Bang’ allow?

Answer 41

More freedom in financial services, foreign investment, corporate mergers (1986)

Question 42

What was the economic boom caused by tax cuts and deregulation called?

Answer 42

The Lawson Boom (1980s)

Question 43

What happened to unemployment between 1986 and 1989?

Answer 43

Fell from 3 million to 1.6 million (1986-1989)

Question 44

What was the inflation rate by 1990?

Answer 44

Approaching 10% (1990)

Question 45

What was the major reform of the NHS in 1990?

Answer 45

Hospitals became ‘NHS Trusts’ competing for services (1990)

Question 46

What was the major education reform in 1986?

Answer 46

GCSEs replaced O-Levels (1986)

Question 47

What educational reform happened in 1988?

Answer 47

Introduction of a national curriculum (1988)

Question 48

How were schools given more independence from local authorities?

Answer 48

They could become ‘grant maintained’ (1980s)

Question 49

What was the housing policy introduced in 1980?

Answer 49

‘Right to Buy’ (1980)

Question 50

How much of a discount did council tenants receive under ‘Right to Buy’?

Answer 50

An average of 44%, sometimes up to 70% (1980)

Question 51

How many council houses were bought by 1987?

Answer 51

Over 1 million (1987)

Question 52

What was the downside of ‘Right to Buy’?

Answer 52

Councils were not allowed to use money from sales to build more housing, reducing social housing stock (1980s)