The Impact of Thatcherism: 1979-1987
thatcher's government
economic policies
society
foreign relations
northern ireland
labour divisions
creation of the SDP
ideology and policies
extra-parliamentary opposition
council housing
poll tax
miner's strike
monetarism
deregulation
privatisation
inflation
unemployment
economic realignment
falklands
europe
special relationship
USSR
based on some traditional conservative thinking such as enoch powell, but also made up of 'new right, think tanks and academics
rejection of keynesian economics in favour of monetarism and FM economies
thatcherites placed strong emphasis on law and order in society, with a later criticism being that policing became too politicised
support and opposition
still many 'wets' in tory party - those who were "soft" in regards to monetarism
thatcher ensured her cabinet was full of 'dries' , particularly in regards to the economy - those who were firm in their support for monetarism
willie whitelaw for home secretary
1983 election success cemented thatchers position, and marginalised majority of wets in her party
geoffrey howe was chancellor of the exchequer
1986 westland affair - thatcher favoured no interference in failing helicopter firm, heseltine resigned and claimed thatcher was acting 'unconstitutionally'
SDP founded in 1981 when key personalities, jenkins, williams, owens and rodgers issued the limehouse declaration
announced the council for social democracy, 28 labour MP's followed the 'gang of four'
snapping point occurred when speakers were heckled by the hard-left, at the wembley conference
labour party defeats in 1983 and 1987 as a result - williams and jenkins won conservative and labour seats in different constituencies
the SDP and labour formed an agreement known as the 'alliance'
until 1987 the alliance overtook labour as credible opposition to thatcher
there was however tense relations between the parties due to differences between the two leaders, the 'two davids'
the SDP separation in 1981 showed labour at having become so divisive 4 key personalities within the party split
there was mass changes in demographic meaning labour could no longer rely upon the traditional working class support
press coverage of labour for the majority, was extremely hostile
labour could no longer depend on trade unions either
in 1983 neil kinnock replaced michael foot as leader of labour, and played a large role in dragging labour back into the political mainstream
1983 election manifesto nicknamed 'the longest suicide note in history'
success in falklands brought a lot of support through media, foreign and domestic politics
alliance merged in 1988 forming liberal democrats
hunger strikes began in 1980, led by bobby sands, as protest of removal of special category status of IRA prisoners - thatcher refused to give in
protest called off in 1981 following ten deaths, including bobby sands
thatcher claimed it was a loss for the IRA as their aim was never achieved, but it made thatcher a hate figure for the republicans, and also gave the IRA martyrs
in 1984, IRA bombed brighton hotel at a conservative party conference aiming to kill thatcher, who was unhurt, but 5 others died
there was national outrage in britain
1985 - anglo-irish agreement signed at hillsborough setting up a permanent intergovernmental cooperation between UK and republic of ireland
republicans angered as it confirmed NI as part of UK
furious loyalist and unionist backlash as well due to the advisory role granted to the irish government in NI
200,000 attended a protest in response where DUP leader Iain Paisley riled up crowds against terrorist in RofI
1986 - new unionist paramilitary set up in response - Ulster resistance
housing act 1980 gave council tenants the 'right to buy' their council house, with 33-50% discount depending on the length of time they had lived there for
by 1988 2 million people had taken this opportunity up
the sale was predominantly in better off areas with little impact in less desirable estates
councils ordered to use profits to reduce debts, not to build new housing, meaning the quality and quantity of homes available for rent dropped sharply, waiting lists grew
people housed in emergency b&b accommodation = expensive for councils and not suited to families
public sector unions became more militant, such as NUPE and COHSE
teachers unions carried on a length dispute over working conditions throughout the 1980's
1980 - secondary picketing outlawed
1984 - unions put under pressure to hold ballots before strike action was called, and more employers tried to prevent unions in the workplace
miners strike of 1984-85 begun with NCB announcing closure of 20 pits, but Scargill, head of NUM claimed they were lying and attempting to close 70 secretly
macgregor rejected this but in 2014, it was released under the 30-year rule that they had intended to close 75 pits
the strike failed to prevent pit closure, due to the police and scargill - the police were more prepared with equipment and training and thatcher used the press to demonise scargill
the battle of orgreaves in 1984 was put down by the police, with 50 injured picketers but 70 injured police officers - it came with claims over police brutality
by 1990 coal employment had fallen by more than 3/4 of what it was in 1979 and was still reducing
union membership had fallen to less than two thirds since 1979 levels by 1990
introduced in scotland in 1989, and then england and wales in 1990
attempt to reform local government finances by ensuring everyone contributed
anti-poll tax unions formed and urged people not to pay, in some areas 30% of people were found to be non-payers
police, courts and councils were unable to enforce it
in 1990 200,000 people gathered in trafalgar square to protest, eventually turning into a riot with 5000 injured
300 arrests were made, the police were seen to have lost control and criticised for being too politicised
cars were overturned and set on fire, shops were smashed and looted
oxford uni voted against thatcher receiving an honorary degree due to the public spending cuts to higher education - it had been given to every other oxford educated post war PM
playwrights satirised thatcher in their plays due to the cuts in spending to the arts
the CofE made a report in 1985 called 'faith in the community' calling on the government to do more to help deprived communities
pressure groups such as CND continued due to thatchers policy backing of deterrence and stepping up arms against USSR
pressure groups like shelter campaigned about the growing homelessness problem, and age concern campaigned against pensioner poverty
1981 - female protesters set up camp outside greenham common base where american cruise missiles were set to be based
1983 - when missiles = due to arrive, 70,000 female protesters made a 14 mile long chain to stop this
1984 newbury council evicted them and demolished the cmap, and overnight they returned and rebuilt it
missiles left the site in 1991, and the women remained protesting trident, the camp was fully demolished in 2000
1979 budget introduced monetarism - cut spending and borrowing to reduce money supply and inflation + increase economic growth
1980 - economy plunged into serious recession with inflation above 15% and unemployment hit above 2 million
stagflation returned
flow of north sea oil and gas prevented a balance of payments crisis
1981 budget increased monetarism - grants to councils fell, benefits were frozen and govt. borrowing went down
there was a shift away from direct taxation and towards indirect, income tax top rates fell from 83% to 40%, with lowest falling from 33% to 25% and VAT doubled from 8% to 15%
social security increased meaning spending didn't go down, the tax system became less progressive and poorer people were disproportionately affected
central to thatcherite economic policy - core belief private sector = more dynamic and efficient than the public sector
BP = first in 1979, BA in 1980 - BT in 1984 = most successful and BG in 1986 = biggest share offer in history
1979 - 1990 stocks and shares ownership increased from 3m to 9m
bought a lot of government revenue, but only short-term, and it costs workers jobs, and made them less secure
encouraged innovation and improvements as businesses could compete with one another
removal of red tape encouraged entrepreneurship as business growth and trade was easier
loan guarantee scheme - easier for small businesses to borrow money
enterprise allowance scheme - encouraged unemployed to start up a business by giving £40 a week for a year
financial deregulation opened up the london stock exchange in 1986 - it became a world financial centre and competed with wall street
1979 - interest rates rose to 17%, discouraging business borrowing and increasing the value of the £, making it hard for businesses to export
economy entered recession, business went bankrupt and unemployment became super high
inflation peaked at 22% in 1980 and fell to 2.5% in 1986
1983 - rose to over 3 million = 13.5% of total workforce, didn't fall below 3m until after 1987
youth employment schemes encouraged firms to employ younger workers for subsidies and lower NI rates
in some areas dependent on heavy industry unemployment reached 25% and didn't fall for the 80's
north-south divide increased, north depended more on industry to survive, and there was a shift towards services rather than manufacturing/ industry = structural unemployment
1981 - series of riots in brixton, toxteth, handsworth and chapeltown led to scarman report founding that race and poverty were the causes of this
sus law - police stop and search suspects
british colony and naval bases since 1833 - in 1981 HMS endurance withdrew, leaving south atlantic without naval presence and argentinian military junta invaded and occupied falklands believing we were willing to let it go
thatcher sent a task force in to reclaim it - sent her party soaring in opinion polls and rise in national patriotic mood
2 may - british sub sank argentine battleship the belgrado, on 4th may exocet missile sunk british warship HMS sheffield
argentinian forces surrendered on 14 june
resurgence of british national pride following decline during the 70's
british granted access to US bases, strengthening ties with US and thatcher and reagan - less possible to win 8000 miles from britain without bases
US granted british access to US bases during falklands, and supported the move by Thatcher
thatcher and reagan shared a strong bond due to similar ideological and personal similarities
they agreed on toughness with the USSR, deployment of cruise missiles and the falklands war
1986 - thatcher gave reagan permission to use british air bases in order to bomb Libya despite unpopularity in britain
1983 -US went against british advice and invaded grenada after a communist coup
cruise missiles based at greenham common in 1983
international tension generated fear over nuclear war between the east and west - particularly following the soviet invasion of afghan in 1979
protect and survive booklet published by government to inform people about what to do in event of a nuclear attack
1983 - 200,000 marched in protest of weapons alongside the CND in london
similar demonstrations held across europe, with west germany holding one with 600,000 people
1984 - thatcher meets gorbachev and declares herself impressed, stating: "i like mr gorbachev, he and i can do business together"
she encouraged reagan to negotiate with him and in 1986 they found willingness to compromise at the Reykjavik summit
1987 - intermediate range nuclear missiles treaty signed in washington - limited short range weapons and began a process of mutual disarmament
'handbag diplomacy' that thatcher adopted could be seen as ruffling the feathers of the consensual politics favoured by other european leaders, but it allowed for thatcher to make progress in her aims for european integration
thatchers first aim was to achieve a better deal for britain in the EEC, which meant a rebate as she believed britain was paying too much and not receiving enough back
achieved rebate in 1984
established a good working relationship with french president francois mitterand, and worked closely over channel tunnel project - agreed in 1986, opening 1994
1986 - thatcher negotiated single european act - biggest piece of european legislation since the UK joined
single european market negotiated between 1985-86 involving free market europe a reality - enthused thatcher and her monetarist policies
1987 - conservative party appeared to remain largely pro-europe
westland affair in 1986 - emergence of visible differences over europe - debate over what foreign ties should be encouraged the most