Chapter 6

• Thatcher's wins numbers


  • 1979-339
  • 1983-397
  • 1987-376
• Tory strengths


  • Falklands
  • Thatcher was strong and determined
• Labour weaknesses


  • Winter of discontent
  • Longest suicide note where Foot performed badly on TV too
  • Manifesto seemed out of touch
  • Negative economic record
• North sea oil to blame for economic success
• Most shares belonged to the rich
• Deprived areas got worse
• 'Get rich quick' dodgy deals took place
• Thatcher's defence of universities


  They needed to be more economically fit
• Criticisms of universities


  • Hated the policies
  • Oxford even refused to give Thatcher her honorary degree
• Positives of universities


  • Government didn't abolish grants for some young people
  • Universities had to accept more people to get the funding
• Negatives of universities


  • Budgets cut
  • Charged for attendance
  • Some staff lost jobs
• Thatcher's defence of the NHS


  Aim was to make it more efficient
• Criticisms of the NHS

  • GPs became the fund holders and got to manage their own budgets meaning it wasn't always spent on the right things
• Positives of the NHS


  • Gave financial discipline
• Negatives of the NHS

  • First step to privatisation
• Reason for privatisation


  'Privatisation was fundamental to improving GB's economic performance' – Thatcher believes nationalised industries were ineffective and over-manned
• Reaction to privatisation


  • Popular with those who could afford to buy shares
  • 3 million shareholders in 1979- 11 million in 1990
  • Shares grew rapidly and the rich could buy more
• Thatcher's defence of council house sales

  Wanted to create a property owning democracy as homeowners were more likely to vote right
• Criticisms of council house sales

  • You had to live in the house for 15 years
• Positives of council house sales

  • Homeownership increased by 12%
• Negatives of council house sales

  • Thatcher didn't sell homes for enough so councils lost money
• Direct taxes


  Based on wages
• Indirect taxes


  Not based on wages
• Manufacturing output = 14%
• Many firms out of business
• Unemployment = 3 mil!
• Government were laisses faire unlike Heath
• Thatcher's view on inflation


  It was bad as it affected social stability, causing the middle class to strikes making GB industries over prices compared to the rest of the EU
• Thatcher's defence of secondary education

  Thatcher wanted to give teachers quality checks, as GB lacked in education
• Criticisms of secondary education

  • Curriculum was too restrictive
  • Too frequent testing
• Positives of secondary education

  • GCSE's were open to all abilities
• Negatives of secondary education

  • GCSE's not rigorous enough
• Positive economy


  • Inflation bought down 23% in 1976 to 4% in 1992
  • Privatisation improved
  • Performance lowered price etc
  • London remained economic hub
  • More people became shareholders
• Howes taxation policies


  • Made the tax indirect
  • Rich= richer, poor= poorer
  • VAT made products pricier, VERY unpopular
• Thatcher's industrial relations legislation

  • 1980 Employment Act- secondary picketing banned and increased rights to those who didn't join a trade union
  • 1982 Employment Act- restricted sympathy strike and allowed close shops if ballot showed 85% of support, anyone sacked for not joining trade union was given high compensation
  • 1984 Trade Union Act- secret ballot had to be held before strikes
• How Thatcher achieved mastery of her cabinet

  • Promoted dries (supporters) and demoted wets (enemies)
  • After winning 3n election in 1983 and Falklands war she became more brutal with the wets
• 1 nation conservatives


  These MP's were older and were loyal members to Heath. Wanted more money on welfare. Wanted Labour to manage economy.
• Wets and Dries


  • Wets (enemies to Thatcher) – wanted government involvement, Thatcher appointed them then began demoting them
  • Dries (supporters of Thatcher's), more traditional and didn't want government involvement, got better jobs and were promoted
• Support for Thatcher


  • Clear sighted leader who bought down inflation
  • Very tough determined
  • Economy (council house + shares)
• Criticism of Thatcher


  • Indirect tax made people poorer
  • Greedy middle class, poor ignored
  • Against welfare + no care for homeless