Took place after Callaghan lost a vote of no confidence
Results
Conservatives won a 43 seat majority with 339 seats and 43% of the vote
Labour won 269 seats with 36% of the vote
Turnout stood at 76%
Governing Competence
Callaghan was seen as weak due to losing vote of no confidence by one vote, he couldn't control take unions and didn't handle the winter of discontent well
Manifesto
Conservatives: control inflation, increase home ownership and improve Britain's defences
Labour: control inflation, tackling unemployment, using Britain's influence to destroy world poverty
Leadership
Thatcher was seen as decisive, competent and effective.
Callaghan (was more popular than Thatcher) was seen as weak and incompetent
Issue Voting
Labour was divided over winter of discontent which left many people dissatisfied with them (possibly resulting in more tactical voting)
Campaign
Conservatives: focused heavily on labours failures with slogans such as "Labour isn't working"
Televised debates were proposed with Callaghan keen on the idea but Thatcher refused to attend (after being convinced by her PR assistant it was a lose lose situation)
Media
Stoked harsh criticism of labour with headlines such as "Crisis what crisis"