10/3/25
Part 1: Thatcherism 1979-1997: Policies and Politics in the Thatcher and Major
Governments
● 1975 - Leader of Conservative Party.
● 1990 - John Major becomes leader of Conservative Party.
● Thatcher - electorally successful. Indisputable fact.
Electorally successful due to…
A. The crisis of 1970s and failure of Labour government of 1974-1979: Inflation peaked
at 25%. Unemployment increased from 3.7% to 5.3% under the Labour government, IMF
crisis of 1976: the failure of the ‘social contract’ and Winter of Discontent 1978/1979,
discrediting of Keynesian and social democratic approaches.
B. Divisions within the Anti-Conservative Vote: 1979 - 36.9% (Labour) & 13.8% (Liberal).
Defection of moderate right wing Labour MPs to form Social Democratic Party - aligned to
the Liberals and formed an alliance with liberal party.
C. Ideological ‘extremism’ and perceived in-electability of Labour: Social Democratic
right - irresponsible trade unionism. Socialist left - leadership failure for betraying socialism.
Left won in battle for control of party in 1979-1981 period, leading to 1983 manifesto, which
advocated: withdrawal from the EEC, unilateral nuclear disarmament, re-nationalisation of
industries privatised by Conservatives. Labour Party Manifesto known as ‘the longest suicide
note in history’ - (Kaufman).
D. Press Bias: Conservative backing newspapers and circulations. For example, Express,
Sun, Mail, Telegraph, Times - backed the Conservative Party. On the other hand, the Mirror
and Guardian backed Labour.
The Thatcher Era: Key Events / Issues:
Era of Conflict:
● Falklands War 1982
● Brighton Bomb 1984
● Miners’ Strike 1984-5
Era of Controversy:
● Controversial character - Thatcher was a divisive figure and was viewed with almost
hatred by her political opponents.
● She was a self-proclaimed conviction politician.
● Embraced ideological pragmatism - she wanted economic stability and national
independence.
● This was due to her controversial views on issues such as:
, ● Imposition of economic sanctions against apartheid South Africa, The Local
Government Act of 1988 and section 28 which stated that councils should not
intentionally promote homosexuality in education, The Community Charge (known as
the Poll Tax) to fund local government, introduced in 1989/1990.
Era of Divisions:
● Thatcher was divisive inside the Conservative Party.
● Thatcherism was not fully accepted within her own party. Divisions existed between:
● Economic ‘dries’ (or Thatcherites): Economic liberals who argued for reducing
public spending, cutting taxation, tightening control of money supply and reducing the
regulatory power of the state. Key dries are Chancellors Howe (1979-1983) and
Lawson (1983-1989).
● Economic ‘wets’ (or non-Thatcherites): Those who disagreed with Thatcher and
feared the social divisions that could be created by such measures (i.e. one nation
Conservatives). Key wets: Ex PM Heath, Cabinet members such as Heseltine
(1979-1986) and Clarke (1985-).
● Fault line would emerge over European integration in the late 1980s:
● Pro-Europeans: economic benefits from further integration and pooling of
sovereignty (such as Heath, Heseltine, Clarke, but also Howe).
● Eurosceptics: sovereignty could not be pooled, national independence needed to be
preserved (Thatcher).
Policy Changes (1979-1990):
● Neo-liberal economic reform e.g. prioritised low inflation, deregulated banks, cut
direct taxation.
● Privatisation of public utilities (e.g. gas and electricity); council homes sold.
● Restriction of trade unions.
● Reforming trade union and employment laws.
● Centralisation of government power e.g. abolition of GLC, curbing local council
power.
● Introduction of ‘quasi-markets’ to the public sector e.g. ‘opted-out’ schools.
Policy ‘Achievements’ 1979-1990:
Thatcherites claim they:
● tackled insufficient industries
● promoted steady economic growth
● massively increased home ownership
● encouraged business growth and share ownership
● promoted self-reliance not state dependency
● tamed destructive trade union practices
From a political perspective they:
● Reduced trade union power and influence
● shrunk the working class as a percentage of the electorate (Labour’s core vote).
● Funded tax cuts from the revenues from privatisation.
Part 1: Thatcherism 1979-1997: Policies and Politics in the Thatcher and Major
Governments
● 1975 - Leader of Conservative Party.
● 1990 - John Major becomes leader of Conservative Party.
● Thatcher - electorally successful. Indisputable fact.
Electorally successful due to…
A. The crisis of 1970s and failure of Labour government of 1974-1979: Inflation peaked
at 25%. Unemployment increased from 3.7% to 5.3% under the Labour government, IMF
crisis of 1976: the failure of the ‘social contract’ and Winter of Discontent 1978/1979,
discrediting of Keynesian and social democratic approaches.
B. Divisions within the Anti-Conservative Vote: 1979 - 36.9% (Labour) & 13.8% (Liberal).
Defection of moderate right wing Labour MPs to form Social Democratic Party - aligned to
the Liberals and formed an alliance with liberal party.
C. Ideological ‘extremism’ and perceived in-electability of Labour: Social Democratic
right - irresponsible trade unionism. Socialist left - leadership failure for betraying socialism.
Left won in battle for control of party in 1979-1981 period, leading to 1983 manifesto, which
advocated: withdrawal from the EEC, unilateral nuclear disarmament, re-nationalisation of
industries privatised by Conservatives. Labour Party Manifesto known as ‘the longest suicide
note in history’ - (Kaufman).
D. Press Bias: Conservative backing newspapers and circulations. For example, Express,
Sun, Mail, Telegraph, Times - backed the Conservative Party. On the other hand, the Mirror
and Guardian backed Labour.
The Thatcher Era: Key Events / Issues:
Era of Conflict:
● Falklands War 1982
● Brighton Bomb 1984
● Miners’ Strike 1984-5
Era of Controversy:
● Controversial character - Thatcher was a divisive figure and was viewed with almost
hatred by her political opponents.
● She was a self-proclaimed conviction politician.
● Embraced ideological pragmatism - she wanted economic stability and national
independence.
● This was due to her controversial views on issues such as:
, ● Imposition of economic sanctions against apartheid South Africa, The Local
Government Act of 1988 and section 28 which stated that councils should not
intentionally promote homosexuality in education, The Community Charge (known as
the Poll Tax) to fund local government, introduced in 1989/1990.
Era of Divisions:
● Thatcher was divisive inside the Conservative Party.
● Thatcherism was not fully accepted within her own party. Divisions existed between:
● Economic ‘dries’ (or Thatcherites): Economic liberals who argued for reducing
public spending, cutting taxation, tightening control of money supply and reducing the
regulatory power of the state. Key dries are Chancellors Howe (1979-1983) and
Lawson (1983-1989).
● Economic ‘wets’ (or non-Thatcherites): Those who disagreed with Thatcher and
feared the social divisions that could be created by such measures (i.e. one nation
Conservatives). Key wets: Ex PM Heath, Cabinet members such as Heseltine
(1979-1986) and Clarke (1985-).
● Fault line would emerge over European integration in the late 1980s:
● Pro-Europeans: economic benefits from further integration and pooling of
sovereignty (such as Heath, Heseltine, Clarke, but also Howe).
● Eurosceptics: sovereignty could not be pooled, national independence needed to be
preserved (Thatcher).
Policy Changes (1979-1990):
● Neo-liberal economic reform e.g. prioritised low inflation, deregulated banks, cut
direct taxation.
● Privatisation of public utilities (e.g. gas and electricity); council homes sold.
● Restriction of trade unions.
● Reforming trade union and employment laws.
● Centralisation of government power e.g. abolition of GLC, curbing local council
power.
● Introduction of ‘quasi-markets’ to the public sector e.g. ‘opted-out’ schools.
Policy ‘Achievements’ 1979-1990:
Thatcherites claim they:
● tackled insufficient industries
● promoted steady economic growth
● massively increased home ownership
● encouraged business growth and share ownership
● promoted self-reliance not state dependency
● tamed destructive trade union practices
From a political perspective they:
● Reduced trade union power and influence
● shrunk the working class as a percentage of the electorate (Labour’s core vote).
● Funded tax cuts from the revenues from privatisation.
