Michael Foot replaces James Callaghan, signalled that the core of the party was swinging to the left, created divisions within Labour
SDP, Social Democratic Party, merged with the Liberals and stood as 'The Alliance'
Success of Falklands Campaign in 1982 saw political tide turn in favour of the Conservative Government
Campaign displayed divisions in two parties, lack of popularity with Thatcher until success of Falklands war coupled with an improved economy, raised her standing in the polls