British Politics:
Thatcherism & beyond
Background
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Economic stagnation
Diminishing growth
Accelerating inflation
Industrial decline
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Older industries (shipbuilding, heavy metal)
less viable than before
Restructuring
Labour unrest
Both Labour and Conservatives
try similar solutions
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Keynesian demand management
Planning
Regulation of trade unions
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‘Battle of Downing Street’ in 1968
Industrial Relations Act, 1971
Indexation
Deals with the trade unions:
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Labour’s ‘Social Contract’, 1976-78
Increased polarization:
Labour moves to the left
 Responding to trade unions &
increasingly militant left, proposes
increased state ownership, trade
restrictions – an alternate economic
strategy
 In contrast to 1950s, 60s, leadership
less able to contain the left
Conservatives
Shift to the right:
 Tentative moves under Edward Heath,
1970-74
 Thatcher ousts Heath in 1975
 After1979, remakes
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not only the Conservative Party,
but also British economy
Thatcher’s style:
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A strong assertive leader:
turning Not for turning-II
Belgrano
Europe
Core elements of Thatcherism
Less state:
 More scope for private initiative
 Allow full play of market forces
 Privatize nationalized industries
 Create ownership society –
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Sale of council houses to owner-occupiers
Promote popular capitalism
Attack on trade unions:
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Regulation of strikes, internal elections
1984 Miners’ Strike:
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Protracted struggle with National Union of
Mine Workers
End result – break power of unions to
resist reforms
Attack on public sector
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Restructure civil service
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Creation of special agencies
Reliance on performance indicators
Elimination of metropolitan councils
Rate-capping as device to curb Labour
councils, restrict spending
Also an attack on Labour Party’s remaining
bastions of power
Broader attack on welfare
state:
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Cutbacks in benefits
Attempted privatization of pensions
Reforms to NHS (later on)
Reluctance to intervene to manage
demand, save failing industries
Preference for monetarist economic
policies:
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Manage money supply rather than manage
demand
Insistence on strong state
Justice system: firmer stance
 No coddling criminals
 Harsher sentences
International relations
 Close alliance with Reagan & US
 Anti-Communist
 Hostile to EU -
“We want our money back
Shift to the right
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Part of a broader phenomenon underway in
both the UK and US,
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Reflect changes in international economy
Also diminished ability of earlier frameworks –
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Later on, in other western democracies
Keynsian demand management – to find solutions
for economic problems
Bolstered by right-wing think tanks on both
sides of the ocean which provide legitimacy
From Thatcher to Major
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Thatcher in power from 1979 to 1990
Initially seeks support from all sides of the party
Over time, governs from the right of the party,
marginalizing ‘wets’ (former one nation conservatives
1990
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Michael Heseltine seeks to replace Thatcher as leader
Thatcher steps down when forced to a second ballot (failed
to get 60%)
Replaced by John Major, a Thatcher loyalist
John Major
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Prime Minister from 1990-97
Presides over an increasingly divided party
With increasingly strong Euro-skeptic wing
Continues Thatcher program
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Privatization of British Rail
Continued restructuring of public sector
Growing insistence on performance indicators
Party battle