Margeret Thatcher's Premiership- 1979 to 1997

Key Events during her premiership

• Argentinian Invasion of the Falkland Islands-Thatcher sent a taskforce to retake the islands for the UK

  • key moment-sinking of the General Belgrano (an argnentine ship)

  • promoted an angry response from anti-war MPs and campaigners because the ship was sailing away from an exclusion zone]

  • general public was supportive of the Falklands war-massively turned her popularity ratings, contributed to her landslide victory in 1983 GE

• 1990 Poll Tax Riots-people across London protested the Community charge

  • the change from payment being based on the wroth of one’s house to a fixed rate was widely criticised as being unfair, and a burden on those less well-off

• unemployment reaching 2 million-urge by Conservative critics to ‘u-turn’ from her spending cuts agenda- replied with ‘You turn if you want to, the Lady’s not for turning’

• 1987 GE-Thatcher government won again- although not as emphatic as 1983

• 1984 NUM Strikes-National Union of mineworkers went on strike- opposed the closure of a large number of pits

  • government won- greatly reduced union power and militancy

  • pubic were divided over the strike- many in the north backed it

• 1984 attempted assassination-IRA bombed hotel in Brighton during a Tory party conference, attempting to assassinate Thatcher

Her economic policies-privatisation and deregulation

• Privatisation and Dereglation:

  • privatised a number of state-run companies

    • 1984-privatisation of British Telecom

    • 1986- British Gas

  • British rail was privatised by Thatcher’s successor- john Major

  • 1986-massive deregulation of banks, financial services and the City of London

    • established London as a global centre for financial services

  Huge sale of council housing to tenants

  • gave five million council house tenants in England and Wales the ‘Right to Buy’ their house from their local authority at a discount

  • through Housing Act 1980

Her social policies

• Trade Union legislation

  • the 1980 Employment Act outlawed secondary action by trade unions

    • secondary action- idea of one set of workers striking to support another

  • 1982 Employment Act further limited powers of trade unions

    • banned political strikes

    • limited the ground on which workers could go on strike

    • made unions liable for damage arisen from industrial action

• Education

  • 1988 Education Reform Act- introduced marketisation principles into state education

    • introduction of SATs, league tables and national curriculum

Her being in control

• deliberately chose to take a presidential approach to leadership

  • had an early stand off with the ‘wets’ in her cabinet and stood firm

  • used her powers of patronage to sack and demote several ‘wets’ and promote her supports

• ‘wets ‘ were given to people who expressed strict opposition to her strict monetarist policies and her cuts on public spending

• ‘dries’ - those who backed Thatcher’s radical policies

• HOWEVER large parts of North England and Scotland felt particularly resentful to the gov’s dominance

Her economic policies-Monetarism

• Monetarism and dealing with a recession:

  • base interest rate was raised to 17% in 1979 to try and bring down inflation

  • 1981- chancellor Howe acted against the received wisdom of Keynesian economics by raising taxes and cutting spending during a recession

  • unemployment increased but policy was still successful as it brought down inflation-govt saw that as more important.

Her economic policies- taxation and local government

• Taxation and local government

  • introduced poll tax in 1989- first n Scotland then rest of country

    • replaced local rates-based on the idea of all individuals paying the same amount rather than basing it on the value of their property

  • was very unpopular

Her economic policies-sales of council houses to tenants

• Huge sale of council housing to tenants

  • gave five million council house tenants in England and Wales the ‘Right to Buy’ their house from their local authority at a discount

  • through Housing Act 1980

  • marked a pivtoal turn- post-war period saw a signifcant rise in state-owned social housing, organised by local counsils

    • however, by 1980s, increasing emphasis was placed on individual membership

Examples of thatcher losing control- losing votes

• losing a vote on subject of sunday trading in 1986

  • government had a majority of 140, on the Shop Bill

  • time when two aspects of New Right Ideology ( neoliberalism and neoconservatism) came into conflict

  • Thatcher’s classical liberal belief in deregulation drove the idea that businesses should be able to operate on a Sunday

  • conservative Christian view influenced 72 Conservative backbenchers to vote against the government

evidence of thatcher losing control-cabinet resignations

• Sir Geoffrey howe’s resignation speech

  • fourth minister to resign over the topic of europe

• by 1990, Thatcher had a few allies left in cabinet

  • she frequently bypassed cabinet when policy-making

• as her support began to erode, she was challenged for leadership

  • Michael Heseltine launched a leadership bid

  • leadership contest rules meant that she required a 15% margin above Heseltine to prevent a second round of voting

• Labour put down a motion of no confidence in the government and demanded an immediate GE

  • her cabinet ministers then spoke to her and encouraged her to step down instead of fighting on

  • she then withdrew from the contest

Was she connected to her cabinet?

NOT PARTICULARLY

• Thatcher’s early government consisted of both ‘Thatcherites’ and ‘wets’

  • however no member of the 1979 cabinet was in Thatcher’s resignation cabinet in 1990

    • EXCEPT Geoffrey Howe- which is why his resignation in 1990 was particularly stark

    • she had purged most of the One Nation ‘wet’ conservatives

    • late 1980s-alienated several senior members of cabinet due to her opposition to greater economic integration into the EEC

  • many of Thatcher’s key allies from 1980s left- mainly due to political differences (e.g. Nigel Lawson- Thatcher’s Chancellor of the Exchequer)

• Thatcher had a presidential style- dominated her cabinet

  • Thatcher had strong ideological to neo-liberal economics and neo-conservative foreign and domestic policy

  • enforced that vision throguh cabinet

  • clashes between political beliefs within cabinet led to her leaving office