The fall of Thatcher
1. Economic:
o 1987- stock market crashed following Big Bang 1986.
o 1988 Lawson budget led to rapid expansion of economic ‘Lawson boom’ = balance of payments problem.
o 1990- inflation risen to 10.9%- higher than 1980- government key objective- low inflation- failed.
o Interest Rates raised to 15%.
o Unemployment still over 2m- higher than 1979.
2. Out of touch
o Poll Tax- unpopular- Thatcher refused to abandon against advice.
o 1989 Berlin wall- Thatcher outspoken in opposition to unification of Germany- out of step in world public
opinion.
o Didn’t campaign in 1st ballot.
o Opinion Polls- personal popularity rating lower than ever 1990.
o Oct 1990- Conservatives lost ultra-safe seat = Eastbourne.
3. Widening gap between rich + poor
o Alienated people/Poll Tax = Conservatives seen as uncaring for lower classes.
o Economic realignment- towards service sector.
o 1983- unemployment 3m- Scarman report- poverty especially in the North.
o Yuppies/London square mile
o Homelessness- Waterloo ‘cardboard city.
1979 13.4% households under poverty line but 22.2% in 1990.
4. Euroscepticism
o Heightened divisions in Conservatives over Europe- internal disagreement- not attractive to voters.
o Thatcher increasingly anti-Europe which furthered Conservative factions.
o Bruges speech- criticised Delor’s plans.
o Thatcher’s ‘No, No, No’ speech Oct 1990- precipitated Howe’s resignation.
o Howe resigned- believed Thatcher’s anti-Europe stance was having damaging effect on Britain’s interests.
Devastating speech- invited Heseltine to challenge.
5. Heseltine- leadership contest- Thatcher = 54.8%/ H = 40.9% (but needed 15% majority).
o Since 1986 resignation- gaining backbench support/building alliances.
o Campaigned strongly.
o Thatcher was out of the country at the Europe summit.
6. Poll Tax- riots v violent e.g. Trafalgar square.
o Thatcher was strongly advised against but she ignored + pressed on- conviction politician.
o Conservatives popularity fell sharply in Opinion Poll- April 1990- Labour was 20 points ahead.
o United people against the Conservatives- 30% non-payers in some areas.
o Infuriated MPs.
Thatcher’s legacy
o Undoubtedly changed British politics.
o Remained important influence on Conservatives for next 15 years/affected development of Labour party.
For Against
Enabled Conservatives to have 18 years in power. Enabled Labour to have 11 years in power.
Broke the excessive power of the unions. Politicised the police/polarised society.
Played a key role in winning the Cold War. Alienated Britain’s partners in Europe.
Restored national pride and prestige. Caused unnecessary damage to Britain’s industrial base.
Made Britain a property-owning democracy. Encouraged private greed at expense of public good.
1. Economic:
o 1987- stock market crashed following Big Bang 1986.
o 1988 Lawson budget led to rapid expansion of economic ‘Lawson boom’ = balance of payments problem.
o 1990- inflation risen to 10.9%- higher than 1980- government key objective- low inflation- failed.
o Interest Rates raised to 15%.
o Unemployment still over 2m- higher than 1979.
2. Out of touch
o Poll Tax- unpopular- Thatcher refused to abandon against advice.
o 1989 Berlin wall- Thatcher outspoken in opposition to unification of Germany- out of step in world public
opinion.
o Didn’t campaign in 1st ballot.
o Opinion Polls- personal popularity rating lower than ever 1990.
o Oct 1990- Conservatives lost ultra-safe seat = Eastbourne.
3. Widening gap between rich + poor
o Alienated people/Poll Tax = Conservatives seen as uncaring for lower classes.
o Economic realignment- towards service sector.
o 1983- unemployment 3m- Scarman report- poverty especially in the North.
o Yuppies/London square mile
o Homelessness- Waterloo ‘cardboard city.
1979 13.4% households under poverty line but 22.2% in 1990.
4. Euroscepticism
o Heightened divisions in Conservatives over Europe- internal disagreement- not attractive to voters.
o Thatcher increasingly anti-Europe which furthered Conservative factions.
o Bruges speech- criticised Delor’s plans.
o Thatcher’s ‘No, No, No’ speech Oct 1990- precipitated Howe’s resignation.
o Howe resigned- believed Thatcher’s anti-Europe stance was having damaging effect on Britain’s interests.
Devastating speech- invited Heseltine to challenge.
5. Heseltine- leadership contest- Thatcher = 54.8%/ H = 40.9% (but needed 15% majority).
o Since 1986 resignation- gaining backbench support/building alliances.
o Campaigned strongly.
o Thatcher was out of the country at the Europe summit.
6. Poll Tax- riots v violent e.g. Trafalgar square.
o Thatcher was strongly advised against but she ignored + pressed on- conviction politician.
o Conservatives popularity fell sharply in Opinion Poll- April 1990- Labour was 20 points ahead.
o United people against the Conservatives- 30% non-payers in some areas.
o Infuriated MPs.
Thatcher’s legacy
o Undoubtedly changed British politics.
o Remained important influence on Conservatives for next 15 years/affected development of Labour party.
For Against
Enabled Conservatives to have 18 years in power. Enabled Labour to have 11 years in power.
Broke the excessive power of the unions. Politicised the police/polarised society.
Played a key role in winning the Cold War. Alienated Britain’s partners in Europe.
Restored national pride and prestige. Caused unnecessary damage to Britain’s industrial base.
Made Britain a property-owning democracy. Encouraged private greed at expense of public good.
