Tony Blair and New Labour, 1997-2007

Food and Mouth Disease, 1999

The Blair administration was put on the back foot by the disease and had little idea on how deal with it effectively.

Decided on the wholesale slaughter of livestock and closing off much of the countryside. Led to considerable hardships for farmers and the tourism industry.

Many suggested there were far more effective ways of dealing with the crisis such as mass vaccination.

Fuel Crisis, 2000

Lorry drivers and farmers made an alliance in protest against what they considered excessive taxes on petrol.

They blocked petrol refineries and the country hit a standstill.

Within a few days there were serious food shortages and people couldn’t get to work, hospitals threatened with closure.

Eventually reached a settlement whereby duties on petrol would no longer be automatically increased.

Bank of England Independence

One of the first major economic polices was Chancellor Gordon Brown granting the BoE control over interest rates.

Reduced political interference, helped control inflation, increased global confidence in UK economy.

Fiscal Policy

Followed Conservative spending plans and aimed to avoid economic shock and gain trust.

Pledged increased public spending in NHS, Education, and Welfare.

Taxation: No increase in basic income tax, introduced an indirect stealth tax, and increased national insurance.

Golden Rule and Sustainable Investment Rule

Golden Rule - Gov. should only borrow to invest, not to fund day-to-day spending.

Sustainable Investment Rule - Debt should stay below 40% of GDP. Aimed to show economic responsibility and avoid Labours past reputation for overspending.

Chancellor Gordon Brown and Economic Policy

The Blair government seemed to manage the economy successfully.

Led by Brown as Chancellor it was a time of low inflation and unemployment.

Brown appeared to set the tone immediately demonstrating responsible management.

Working Families Tax Credit and Child Tax Credit, 1999

UK government payments to support low income families, encourage working parents, and reduce child poverty.

National Minimum Wage Act, 1999

Established the UK’s first, legally binding minimum wage.

Set up by the Low Pay Commission to reduce extreme poverty and help low income workers.

Public Service Investment

Big Increase post-2000:

• NHS spending doubled

• Education funding increased

• Public Transport investment

• Heathrow Terminal 5, London Underground Improvements, Ldn 2012 Olympics

Methods:

• Traditional government spending

• Private Finance Initiative

Private Finance Initiative

Private companies fund/build public projects, with the government repaying them over time.

Used for Hospitals, Schools, and Infrastructure.

Pros - Immediate investment without upfront cost, Tackling poverty and inequality.

Cons - Long Term expensive repayments, Criticisms as ‘hidden debt’

Globalisation and Business Policy

Pro-business approach encouraging:

• Investment

• Financial Services (city of London)

• Light Regulation of banks

Contributed to vulnerability pre-2008 financial crash

Energy

The government had been committed to its development of renewable energy, with a target of supply 10% of UK energy by 2010.

However, it was over ambitious and controversial, forcing the government to invest in nuclear power to make up for the shortfall.

Economic Growth and Outcomes

Positives:

• Decade of continuous growth

• Low inflation and unemployment

• Increased living standards and employment

Negatives:

• Rising income inequality

• Growing public debt

• Economic reliance on tertiary sector and consumer borrowing.

Employment

By 2007, approx. 2.1-2.3 million more people employed then in 1997.

New Deal for Young Persons (1998) focused on 18-24yr olds who were unemployed.

National Minimum Wage Act (1999) £3.60/hr for adults.

Tax Credit for Working Families (1999)

Limitations: Hidden unemployment, Regional divide, Productivity v. Wages

Productivity

Productivity grew 2.1-2.3%/yr.

Brown’s drivers were: Education, Research + Development, and Competition.

Did leave a “long-tail” of underperformance.

Expansion of Public Sector

From 1997-2007, public spending increased by 42%.

Expansion of NHS, Teaching, & Police Workforces.

PFI - Heavily criticised method of funding.

Pensions

Pension Credit (2003) fixed pensioner poverty.

Winter Fuel Payments (1997) restored energy links.

Pensions Act (2007) created by Turners Pension Commission introduced automatic enrolment and raising the state pension age from 66-68.

Positive for current pensioners, Negative for future pensioners

The Special Relationship

Blair undoubtedly renewed the Special Relationship with the US over his loyalty to Bush and the War on Terror.

Blair was accused of being Bush’s ‘Poodle’ and Bush was concerned about parliamentary support for Iraq.

The Social Chapter 1997

The UK’s decision to adopt the EU’s social protocol, reversing the Maastricht Treaty in 1992.

Blair agreed to enhance employee rights making them integral to UK Law.

It introduced mandatory parental leave, European work councils, Part-time worker protection, Improved health and safety.

The Euro Debate, 1997-2003

Blair was open to strengthen the UK economy and trade with the EU easier.

But Brown wanted the Euro to pass his ‘5 Economic Tests’ before it was adopted:

1. UK economy compatible with the Eurozone

2. Flexible with economic changes without full control

3. Foreign Investment

4. Financial services, help or hinder?

5. Growth and stability with the Euro

It failed so Brown stopped the UK from joining the Eurozone in January 2002.

Treaty of Nice 2001

Blair took a leading role in the negotiations with the provisions being:

• Expansion of qualified mandatory voting (QMV)

• Reduced veto possibility and increased efficiency

• Reweighted votes towards bigger European economies like France and Britain.

Blair supported it as he believed in maintaining stability and democracy in post-war Europe.

Iraq War (2003) and EU Division

When Blair chose “Atlanticism” in the Iraq War and didn’t have backing from UN, the ties between UK (Blair), France (Chirac), and Germany (Schroder) strained further.

UK’s EU presidency 2005

Blair’s goals as EU President:

• Modernise the EU budget

• Economic Reform (Lisbon Agenda)

• EU enlargement

• Energy Policies

• Addressing the “crisis” of confidence

Extent of goals achieved:

Was a “quiet triumph” and partially achieved. They moved the EU towards a more pro-reform posture but proved difficult to achieve structural reform during a 6-month, rotating presidency.

Kosovo, 1999

In 1999, conflict broke out in Kosovo where Serbian forces under Milosevic were accused of ethnic cleansing against the Kosovar Albanians.

Blair strongly advocated military action without UN approval after diplomatic efforts failed, arguing stopping a genocide was a moral imperative.

The UK played a major role in NATO’s 78-day bombing campaign, forcing Serbian forces to withdraw.

Seen as a successful example of Blair’s ‘liberal intervention’ policy.

Sierra Leone, 2000

In 2000, Sierra Leone was fighting a brutal civil war, with rebel groups committing atrocities.

The UK sent around 1,200 troops to help secure the capital, Freetown, supported by UN peacekeepers.

British forces defeated the rebels, stabilised the situation, and trained local forces.

Blair’s most successful example of liberal intervention working.

The War on Terror

Following the 9/11 terrorist attacks in New York City in 2001, the US pledged the War on Terror.

They invaded Afghanistan in October 2001 to overthrow the Taliban and Al Qaeda whilst capturing Osama Bin Laden (the alleged orchestrator of 9/11).

Despite initial success, the attack dragged on reducing Blair’s image at home. But did receive praise from the USA for his loyalty.

Operation Desert Fox, 1998

In December 1998, the US and UK carried out joint bombing raids of Iraqi targets to prevent Saddam Hussain’s weapons building programme from progressing.

It was hailed as a huge success.

The Iraq War 2003-2011

Background - Saddam Hussain was in control of Iraq and was targeted for a regime change during the War on Terror by the USA. In Sep. 2002, Blair announced to the Commons that Iraq had WMDs but his allies were sceptical. Robin Cook, Leader of HoC and former Foreign Sec. resigned over Britain’s involvement.

Invasion - US and UK forces invaded Iraq in March 2003, and Hussain was quickly overthrown, but caused a civil war which Britain was bombed at the 7/7 Bombing in July 2005. Many British Muslims were radicalised thus facing discrimination even if they weren’t involved.

Consequences - It was uncovered that Iraq had no WMDs, and many believed he ‘set up’ fabricated evidence at the order of the USA to get Britain involved. It tarnished his image and was scrutinised about it the rest of premiership and after his resignation in 2007.

Devolution

Blair held referendums in Scotland and Wales in 1997 asking the population of those nations if they wanted political bodies to govern certain aspects of those nations. Both voted yes and got their Assemblies in 1998.

Both have had multiple more acts and powers granted to them since then.

Northern Ireland were granted Devolution in the Good Friday Agreement in 1998 and haven’t had any changes since following the Downing St. Declaration in 1993.

National Minimum Wage Act 1998

Set a legal minimum wage targeting low-income earners, aiming to lift many out of poverty without hindering employment.

Raised the incomes of millions without causing significant job losses as critics feared.

Women

Many women found they were still expected to take responsibility for the larger share of housework and childcare despite having jobs.

In 1997 election, more than 100 MPs were in the HoC with the media labelling them ‘Blair’s Babes’ but still faced the ‘glass ceiling’ many women faced in the work place.

New Deal for Young People, 1998

Announced in April 1998, the NDYP aimed at creating jobs for young people aged 18-24.

It also provided training, education, and subsidised employment to help them get better and more skilled jobs.

House of Lords Reform

House of Lords Act 1999 - Removed the automatic right of hereditary peers to stie and vote 92.

Constitutional Reform Act 2005 - Blair removed the Appellate Committee and Law Lords from the HoL and set up a UK Supreme Court that opened in 2009.

Immigration

The enlargement of the EU in 2004 saw the entry of eastern European countries such as Latvia and Poland with the right to come to Britain and work.

By 2006, 1 million Poles had arrived, tensions did rise in certain areas but the response was generally positive.

Multi-Culturalism

Britain had a history of racial tensions (Notting Hill 1958) which meant that Social segregation occurred and produced ethnic enclaves which sparked even more tensions between these enclaves.

Religious Hatred Act 2006 - Designed to protect people from being abused for their religious beliefs, although critics felt religious hatred was too vague a concept to be able to be defined in law.

Population and The Work Force

The population hit 60.5 million in 2006, rising 5 million since 1971.

However average age rose from 34→39. The population ageing had doubled the number of pensioners between 1956-2006.

Led to unjust burden on the working population and dramatised theories that there would be a war between young and old.

Education

When Blair was campaigning he announced his priorities as “education, education, education” with the main objectives being to raise standards and achieve greater equality of opportunity.

• Sure Start Centres - Targeted support for families in the most deprived areas

• Education maintained allowance - Financial support for students staying in Post-16 education.

• Children Act 2004 and ‘Every Child Matters’ policy - placed children at the centre of public services.

• Principle that Universities should contribute to tuition costs, fees hiked in 2004 despite backbench backlash.

Poverty and Welfare

Child Poverty:

• 1999, Blair pledged “our historic aim is that ours is first generation to end child poverty forever”

• From 1997-2008, pensioner poverty fell from 20%→14%

Welfare Reform:

• 1st year of Blair’s government, sever cuts made to benefit lone parents - rational was single parents work whilst state provided cheap, free childcare.

• Welfare policy aimed to make social security a route into employment, reducing taxes and penalties that discourage work

Winter Fuel Allowance, 1997

Annual tax-free heating allowance of between £100-£300 made to those over the pension age. It meant that many older people were able to ‘survive’ the winter but did extend the powers of the state beyond that of previous governments.

Human Rights Act 1998

Introduced the European standard for Human Rights outlined by the ECHR into the UK constitution.

Jobseeker’s Allowance 1996

Introduced a 40hr week and combined previous unemployment systems into 1.

Divided into condition based and income based.

Freedom of Information Act 2000

Provided a general right of access of information by public authorities

‘Open Government’

Good Friday Agreement 1998

Why was it made? - Blair and Bertie Ahern worked together along with Sinn Fein agreed the need to decommission weapons and the paramilitaries agreed. Held a referendum in RoI and NI: RoI voted 95%, NI voted 71% in favour.

Mo Mowlam - Blair’s Sec. of State for NI who was open and approached both sides building relationships with Unionists and Nationalists. Helped create the trust needed for negotiations.

Successes:

• Ended large scale violence which lasted 30 years.

• After GFA, violence dramatically decreased.

• Brought extremists into politics

• Leaders like Gerry Adam’s became political actors instead of relying on conflict for progress

Failures:

• Peace was fragile - Stormont suspended in 2002 due to tensions

• Decommissioning problems - IRA delayed giving up weapons causing mistrust

• Continued Violence - Omagh Bombing 1998 (28 dead), not all groups accepted peace

• Controversial decisions - Early release of paramilitary prisoners, many saw negotiating with terrorists morally wrong.

Signed 10th April 1998 in Belfast.

Blair as leader

He was charismatic and confutable with the media, and portrayed himself as a man of the people.

Society nicknamed “Sexy Tony Blair” due to his good looks, especially compared to his opponent John Major.

He rebranded the Labour party and made them more centrist with the removal of Clause IV from the party manifesto in 1995.

1997 Election

Blair faced off against a dwindling Conservative government led by the incumbent John Major.

Blair’s charisma and charm helped him appeal to all demographics winning 418 seats with 43.2% of the vote and an electoral landslide.

Major won only 165 seats with 30.6% of the vote.

The election showcased the publics need for change after 18 years of Conservative rule and Blair capitalised on the failures of his opponents to win such a landslide.

2001 Election

Was Blair v. William Hague and much like 4 years prior, Blair dominated.

Blair was much younger and more charismatic then Hague, appealing to the public better.

In the end Blair only lost 6 seats down to 412, whilst Hague could only win 1 extra up to 166.

2005 Election

Was Blair v. Michael Howard and it was a similar story to the previous two elections.

Blair was still more likeable and better at campaigning then Howard, but the Iraq War had caused him to be less likeable than 2001 and 1997.

Blair lost 48 seats winning only 355, whilst Howard won 33 seats pushing the Conservatives up to 198 seats.

This election showcased how Blair was still in public favour, but his mistakes in Iraq and Afghanistan had caused his public opinion to drop slightly and loomed over him the rest of his 2 years in office.

Conservative Leaders 1997-2017

William Hague (1997-2001)

Ian Duncan Smith (2001-2003)

Michael Howard (2003-2005)

David Cameron (2005-2017) - Only one who was successful in challenging Blair as he was young and charismatic for the Conservatives and what they needed to be ‘successful’ in 2010.