MOMB The impact of Thatcherism, 1979-87

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109 Terms

1
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Conservative aims once in power: Union power

Limit union power to curb wildcat strikes

2
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Conservative aims once in power: Post war consensus

Breaking the consensus to prioritise a free market over state ownership

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Conservative aims once in power: Taxes

Lower income tax as people were being taxed to prop up industries

4
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Conservative aims once in power: Inflation

Lowering inflation was their top priority, at the expense of unemployment

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How did Thatcher divide her ministers?

Into the camps of ‘one of us’ and ‘wets/wimps’

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‘One of us’

Thatcherites

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‘Wets/wimps’

Heathites and consensus politicians

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Thatcherites in her cabinet

Keith Joseph

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Heathites in her cabinet

Willie Whitelaw, Jim Prior, Peter Walker, Sir Ian Gilmore

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Why did Thatcher need Heathites in her cabinet?

To maintain party unity- as the first female PM, she was not yet strong enough to choose her own cabinet

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Michael Heseltine

In charge of housing

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Lord Carrington

Had been in gov since the 1950s, foreign minister

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1979-81 Economics- Spending

Cutbacks on public spending

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1979-81 Economics- Monetarism

Introduced monetarism- tighter control of money supply

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1979-81 Economics- Interest rates

Increased interest rates to limit borrowing

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What did increased interest rates lead to?

A severe recession between 1979-18

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1979-81 Economic recession- Closure

Mines and factories closed

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1979-81 Economic recession- Unemployment

Unemployment went over 2 million

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1979-81 Economic recession- Inflation

Inflation didn’t go down and the economy shrank by 2.5% over this period (European average growth 5%)

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1979-81 Economic recession- manufacturing

Manufacturing extremely hard hit, affecting old industrial areas of Britain

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Which divide began in this period?

North-south

22
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What did inflation rise to in this period?

20%- it had been 8% last under Callaghan

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Why wasn’t inflation really Thatcher’s fault?

Her gov had to accept high pay rises for public sector workers negotiated under Heath to prevent more strikes

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Why did prices rise in this period?

Reducing income tax meant they needed money from elsewhere

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Why did Thatcher like VAT?

People have a choice in which products they buy- with taxes they don’t

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What products were taxes put on?

Fuel, alcohol and tobacco

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What was a consequence of rising unemployment?

More money had to be spent on welfare benefits

28
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Famous quote from 1980 conference

‘You turn if you want to. The lady’s not for turning’

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Although heath had often u turned…

Thatcher was determined not to

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However, how much of Britain’s manufacturing capacity was lost between 1979-81?

1/5

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Why did the unions not react strongly to the loss of manufacturing capacity?

They were much less militant in this period as the threat of unemployment was too great

32
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Howe’s 1981 ‘monetarist’ budget

Raised a range of taxes to reduce gov spending, despite it being a recession- opposite of Keynesian economics

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What did many economists argue about the budget?

It was regressive taxation, as the lower classes were hit hard by duties on goods

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How did some economists and MPs respond to the budget?

364 signed a letter to the times in protest of this budget, but no MPs resigned as they felt thatcher wouldn’t last long

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What did thatcher do as she grew in political confidence?

She removed leading ‘wets’ from her cabinet

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What happened to Jim Prior?

He was replaced by Norman Tebbit as Employment Secretary

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Who were sacked from Thatcher’s cabinet?

Sir Ian Gilmour and chairman Lord Thorneycroft

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Which effective ‘wet’ was retained?

Peter Walker

39
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When did recession end?

1982, inflation began to fall too

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Where did small growth begin to occur?

Newer industries

41
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However, what was happening with unemployment?

It continued to rise and reached 3 million for the first time since the 1930s, peaking at 13%

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How did thatcher’s gov begin to be perceived?

As successful in its determination to lower inflation and avoid heath style u turns

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Over who did Thatcher’s popularity begin to grow?

Michael Foot, the new labour leader

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What did some people point out about the Thatcher gov?

Their heartlessness in being prepared to pay such a high price in the levels of unemployment

45
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Where were there thus major riots?

Liverpool, London and Bristol in 1980 and 1981

46
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Reasons for unemployment: Global problems

At the start of the 1980s, there was a world regression

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Reasons for unemployment: Manufacturing

Decline of traditional British manufacturing, e.g. steel and ship building

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Reasons for unemployment: Wages

Wage increases not matched by greater productivity

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Reasons for unemployment: Exports

Uncompetitive exports- sterling’s value was exacerbated by high interest rates and North Sea oil

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Reasons for unemployment: Smaller state

Reduced industrial subsidies

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Reasons for unemployment: Attitudes to unemployment

Unemployment was no longer the top priority but ‘collateral damage’ in the war on inflation

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When did Callaghan resign?

1980

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What did the battle for Labour leadership become?

A battle between the right and left wings

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Which candidates were on the right/left?

Healey on the right, who lost to Foot on the left

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What was Foot’s job as new leader?

To reignite support for Labour, but he was a weak leader and unable to control the warring factions

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What happened to the Labour left in this period?

It grew stronger

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What did the left wing want?

More socialist policies, condemning Wilson’s governments of the 60s and 70s

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What did other beliefs did the left hold?

The working class wanted more socialism, and the need to reduce the power of MPs at party conferences

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Who did the left wing want to hand more power to?

Local constituencies representing ordinary members

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What did the left wing begin to do when an MP died?

Attempt to deselect right-wing candidates and ensure left wingers, essentially taking over local constituencies

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Who was the left wing’s parliamentary champion?

Tony Benn

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Militant

The extreme left wing faction, a Trotskyist group, who rose in this period (especially in London and Liverpool)

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What did working class Britons actually want?

Policies that would improve their living standards and increase their opportunities

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What proved their new desires?

The 1979 election

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Who would Benn’s group thus not appeal to?

The C2s, as working class Britons wanted to be more individualistic.

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Divisive party conferences of 1981: Wembley

Labour voted to give more power to unions in deciding the outcomes of leadership elections

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Why were some MPs angry about the vote?

They would have less power in deciding policies and leadership

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Who thus resigned?

Roy Jenkins, Bill Rodgers, Shirley Williams and Dr David Owen to form the SDP

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SDP

A new social Democratic Party

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Divisive party conferences of 1981: Brighton

Healey was chosen as deputy leader over Tony Benn after another bitter fight between the right and left

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What would Foot do in the HOC?

Ramble and debate in true intellectual style- he wasn’t good at putting things plainly like Mrs Thatcher could

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Entryism

Infiltration by the radical left

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What was the state of the economy like by the 1983 election?

The government was meeting their priority goals, e.g. inflation and growth

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How was Mrs thatcher’s political authority?

It was increasing, shown by her cabinet reshuffle

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Impact of the weaker opposition

The left wing, socialist labour was likely to struggle to win back votes lost to thatcher in 1979

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What was a factor determining whether the Conservatives would keep their votes?

Union power

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Did the Conservatives limit union power?

Yes, as some legislation stopped secondary picketing which massively affected the economy

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Who did the SDP go into an alliance with?

The liberals, forming The Alliance

79
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How did the Alliance capture the centre ground?

They won a series of by elections 1981-3

80
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Where did Roy Jenkins capture a safe labour seat?

1981, Hill Head in Glasgow

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Bermondsey

A deprived, working class area

82
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1983 Bermondsey by-election

Labour’s extreme left candidate Peter Tatchell lost to the Alliance candidate Simon Hughes

83
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What was the Bermondsey campaign like?

Very dirty on both sides, but the deprived voters chose the liberal candidate who retained this post for decades

84
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What was the political situation in 1982?

Despite having a heavily two party based system, the Alliance was ahead in the polls, making an election risky

85
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What were the Falkland Islands?

A British dependency, still regarded as British territory

86
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What was recommended in the 1970s?

To withdraw HMS Endurance from the Falklands as part of military cutbacks, but Callaghan refused due to the argentine risk

87
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When had the British seized the islands?

1833, but Argentina saw them as their own due to their proximity

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What did Argentina call the Falklands?

Las Malvinas

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What did Thatcher want to do when she came to power?

Reverse the cutbacks of the 60s and 70s

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Why did thatcher want to remilitarise?

The threat of the USSR

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Who withdrew HMS Endurance?

Lord Carrington, to be able to focus on British interests elsewhere.

92
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When did Argentine forces land to recapture the islands?

March 1982

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Apart from HMS Endurance, why did Argentina invade?

The dictator General Galtieri wanted a patriotic military victory to boost his declining popularity.

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Despite many in government opposing it, what did the Admiral of the Fleet tell Mrs Thatcher?

That the island should and could be taken back

95
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Reasons why the British public felt strongly patriotic: Fascism

The enemy was a fascist dictator, so even Michael Foot spoke about the need to support the gov at this time

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Reasons why the British public felt strongly patriotic: Imperialism

It was a chance to reverse in a small way Britains long term imperial decline

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Reasons why the British public felt strongly patriotic: Sovereignty

Falklands residents were British and wanted to remain so

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Who out of the public was against the Falklands war?

Churchmen and activists

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What did the churchmen and activists argue?

It was a form of imperialism to reclaim the islands

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Why else were people against the war?

Because they were anti Thatcher and didn’t want her to use it to boost her personal popularity