Thatcher revolution

• people work better if they can keep more earnings
• return to supply side economics
• deregulation

  • removed red tape and financial restrictions
  • credit and exchange controls abolished
  • transport is deregulated for competition
  • schools can opt out of LEA
  • NHS internal market created
  • Housing act 1980 - right to buy discount nearly 50%
• 68% of population home owners by 1990 - up by 15%

  • short term policy as little social housing now
• Privatisation

  • Governmnet can’t be blamed for problems and less spending in subsidies
  • shareholders reach 9 million
• which enterprises are privatised?

  • british air
  • British steel
  • British coal
  • British telecom
  • regional electrocity and water
• denationalising out of dogma
• socialised losses and privatised profits
• thatchers privatisation transcends generations and replaces Attlean consensus
• privatisation created costs such as ofcom and ofgem to regulate privatisation but little done
• 4 million industrial workers by 1990
• North Sea oil squandered assets and power
• GDP growth rate is 2.1% - higher than Europe
• 26% real wages rise versus -7% America
• self employed rises from 1.9 million to 3.4 by 1989
• critics argue north sea oil privatisation and privatisation overall allowed for thatcher to overcome impacts of monetarist policies and recession
• taxation

  • whilst reduced it doesn’t matter for average person as VAT and local rates rise instead
  • amoral system
• Westland affair highlighted bullying of cabinet and us pressure but didnt change vote
• why did thatcher win a third term?

  • Economy doing well
  • Killock was centrist but not enough
  • Labour and alliance vote compounds to 17 million versus 13 million of conservatives
  • further reform in healthcare and eduction
• after election she offers heath and Pym peerages to stop criticism
• education reforms

  • assisted places scheme
  • LEA arent compulsory as left wing + competition
  • national curriculum introduced - dictated personal views with Eurocentric teaching and 25 year policy
  • key stages
  • league tables publicised
• NHS Reforms

  • 200 non medical managers
  • Laundry, cleaning and catering had contracts - competitive
  • GP fund holding and self managing trusts create competition for patients
  • consumers see lack of difference as free at point of delivery
• local government reforms

  • compulsory tendering
  • socialist groups dominated in London and manchester with highest spending due to little voting
  • broke up metropitlan councils and abolished Greater London counil
• By 1988 - highest rate was 40% and basic was 25%

  • direct tax to indirect tax which impact s poorest