Towards a new consensus 1987-1997: Political + Economic Flashcards
(32 cards)
Who are the 2 Conservative prime ministers within this time?
- Thatcher (resigned in 1990)
- John Major (1990-1997)
What forced Thatcher to resign?
A vote of no confidence in 1990
When was the poll tax abandoned?
1991 in favour of the new council tax
How much did unemployment rise by between 1991 and 1992?
1991- 1.6 million
1992- 2.6 million
What was inflation by 1990?
10.9%
What was Britain’s economic situation before the 1992 election and what did Major do about it?
- Unemployment rose from 1.6 million to 2.6 million
- Homeowners were trapped in negative equity (had to repay mortgages higher than value of house)
- Many had homes repossessed
- Major resorted to high public spending (forced to do this as a result of rising unemployment)
- Used government borrowing for subsidies on transport and increased NHS spending
What was Black Wednesday?
- Britain joined ERM in 1990 (Thatcher was persuaded it would help the rising inflation problem)
- ERM required Britain to maintain a fixed rate of exchange
- By 1992 the British currency was under pressure
- Major was determined to avoid devaluation of the pound and wanted to remain in ERM, but despite all efforts the pounds value continued to decrease
- Had to leave ERM in 1992
What were the political effects of Black Wednesday?
- Steep drop in Conservative support in opinion polls
- Major’s personal authority was badly weakened
- Criticised by newspapers that previously supported him
- Labour Party shot ahead in polls
What were the economic effects of Black Wednesday?
- Economy stabilised
- Prevented Britain from having to keep high interest rates to protect the stability of the sterling
- Exchange rates decreased
- Unemployment slowed
- House prices increased
- Expanded world trade
- Consumer spending increased
What was the political sleaze and scandals under Major?
- More than a dozen sex scandals involving Conservative MP’s
- 1994 Scott Enquiry- Created by Major to investigate illegal gun dealing but found that Conservative ministers were the ones illegally dealing the guns to Iraq
- 2 leading Conservatives were convicted of perjury
- Private eye mocked Major
Which of Thatcher’s policies did Major continue?
Privatisation (coal industry privatised in 1994 and railways privatised in 1996)
What was the private finance initiative?
Public private partnerships which meant that private companies would fund infrastructure improvements and deliver public services that the state would pay for
What was the citizens charter and when was it created?
- 1991
- Gave public service users more power over the quality of their services they received by providing information about the standard they should expect
What was the cones hotline?
A phone number motorists could call if motorway lanes were unexpectedly closed (became target of satire)
What was Major’s approach to Northern Ireland?
- In 1993 the government received a secret message which hinted that Sinn Fein was ready to discuss a peace agreement
- Major had a good relationship with the Irish Taoiseach
- Major and Taoiseach went public in 1993 with a joint Downing Street Declaration
- In 1994 the IRA announced a ceasefire
- However in 1996 the IRA bombed parts of London and Manchester
What were the divisions within Thatcher’s government?
- Thatcher’s use of Walters as an economic adviser infuriated her Chancellor (Lawson), leading to him resigning in 1989
- Alienated Howe by demoting him from foreign office, leading to him resigning a year later
What were the divisions within Major’s government?
- Right wing wanted more radical social policies
- By 1995 Major felt so insecure as a leader that he called for a leadership election so he could be re elected into his own job (89 Conservative MP’s voted against him)
Who are the 3 Labour leaders within this time period?
- Neil Kinnock (1983-1992)
- John Smith (1992-1994)
- Tony Blair (1994-2007)
How did Kinnock try to reorganise the Labour Party after its defeat in the 1987 election?
By moving its policies towards the centre ground (became a much more professional party)
What image of the Labour Party did John Smith achieve?
Reassuring image of moderation and competence
What happened to the Labour Party’s 1983 manifesto by 1988?
- Most of it had been ditched after a policy review was launched in 1987
- Included EEC withdrawal, unilateral nuclear disarmament, tax rises on high incomes
What did Kinnock do with the trade unions?
Signalled a split with them by ending the Labour Party’s support for closed shop union agreements in 1989
How did John Smith signal a shift in the Labour Party?
By moving to abolish the trade union block by introducing ‘One member, one vote’ in 1993
How was John Smith seen as a leader?
- Serious
- Trustworthy with the economy
- People argued he might have achieved what Blair did and maybe even more
