Following the vote of no confidence against the Labour government and prime minister James Callaghan on 28 March 1979, a general election was called for 3 May 1979. The Winter of Discontent had seen the Labour government's popularity slump during the previous four months, and the opinion polls all pointed towards a Conservative victory.
The Conservatives won the election with a majority of 44 seats and their leader Margaret Thatcher became the United Kingdom's first female prime minister.
Thatcher inherited some of the worst economic statistics of postwar Britain. The nation was still feeling the effects of the numerous strikes during the recent Winter of Discontent. Inflation had recently topped twenty per cent, and unemployment was in excess of 1.5 million for the first time since the 1930s.
Thatcher's monetarist and deflationary economic policies saw a cut in the inflation rate from a high of 22 per cent in May 1980 to just over 13 per cent by January 1981, and by June 1983 it had fallen to a 15-year low of 4.9 per cent.
Decreasing the public sector borrowing requirement as a share of GDP was a part of the medium term financial strategy at the beginning of the first Thatcher ministry. It was brought down from around five per cent during the 1978–1979 period to around half of this figure during the 1982–1983 period.[1]
Public expenditure as a share of GDP increased at around 1.5 per cent per year during the 1979–1983 period, despite the target being a reduction of one per cent, per year. This increase in spending was mostly driven by larger expenditures in social security programs such as unemployment benefits, industrial support, and increased lending to nationalized industries; defense spending did not go up considerably during the Falklands War.[2]
Long-term unemployment increased considerably during this period: almost one third of the unemployed had been without a job for more than one year. The manufacturing industry was considerably affected during the first Thatcher government: employment in this sector decreased by almost 20 per cent between 1979 and 1982. This decrease drove almost all of the drop in employment for this period.[3]
Productivity started seeing considerable growth during the 1979–1982 period in some industries. Total factor productivity growth during these years was 13.9 per cent in the metal manufacture industry, 6.6 per cent in motor vehicle manufacture, 7.1 per cent in ship and aircraft manufacture, and 7.5 per cent in agriculture.[4]
Income distribution widened considerably during Thatcher's ministry. During the 1979–1986 period, real income per capita fell for the two lower quintiles by four and 12 per cent respectively; but for the top three quintiles, it went up by 24, 11, and 10 per cent, respectively.[5]
Thatcher also oversaw union reforms which saw strikes at their lowest for thirty years by 1983. However, her economic policies also resulted in the loss of much of Britain's heavy industry. Coal pits, steel plants, machine-tools and shipyards were particularly hard hit, most of all in Scotland, Northern Ireland and the north of England. By 1983, unemployment had reached 3.2 million, although economic growth was now re-established following the recession of 1980 and 1981.
The Labour opposition, which changed leader from James Callaghan to Michael Foot in 1980, was in no position to exploit the situation and mount a threat to the Conservative government's power. The change of leader saw the party shift dramatically to the left, and in 1981 a host of disenchanted Labour MPs formed the breakaway Social Democratic Party. The new party swiftly formed an alliance with the Liberals with a view to forming a coalition government at the next election. Roy Jenkins, leader of the SDP, worked in conjunction with Liberal leader David Steel with the goal of forming a coalition government at the next general election. For a while, opinion polls suggested that this could happen, with support for the Alliance peaking at 50 per cent in late 1981, with both the Tories and Labour faring dismally.
However, when the Falkland Islands (a British dependent territory in the South Atlantic) were seized by Argentine forces in March 1982, Thatcher was swift to mount a military response. The subsequent ten-week Falklands War concluded with a British victory on 14 June when the Argentines surrendered. The success of this military campaign saw a rapid turnaround in voter sentiment, with the Tory government firmly in the lead in all major opinion polls by the summer of 1982. A Conservative victory at the next election appeared inevitable, although it appeared far from clear whether it would be Labour or the Alliance who formed the next opposition.
Thatcher had the option of waiting until May 1984 before calling a general election, but the opinion polls remained in her favour as 1983 dawned; she called a general election for 9 June. With all the pollsters pointing towards a Conservative majority, the most interesting outcome of the election was the guessing game as to whether it would be Labour or the Alliance who formed the next opposition.
In the event, the Conservatives were re-elected with a 144-seat majority. The election was an unmitigated disaster for Labour, who polled a mere 27.6 per cent of the vote and were left with just 209 MPs in the new parliament. The Alliance came close to Labour in terms of votes with 25.4 per cent of the electorate voting for them, but won a mere 23 seats.
John Nott succeeded Francis Pym as Secretary of State for Defence. John Biffen succeeded Nott as Secretary of State for Trade and President of the Board of Trade.
January 1983–Michael Heseltine succeeded John Nott as Secretary of State for Defence. Tom King succeeded Heseltine as Secretary of State for the Environment.
Michael Ray Dibdin Heseltine, Baron Heseltine, is a British politician. Having begun his career as a property developer, he became one of the founders of the publishing house Haymarket. Heseltine served as a Conservative Member of Parliament from 1966 to 2001. He was a prominent figure in the governments of Margaret Thatcher and John Major, and served as Deputy Prime Minister and First Secretary of State under Major.
William John Biffen, Baron Biffen,, was a British Conservative Party politician. He was a Member of Parliament from 1961 to 1997, and served in Margaret Thatcher's cabinet; he then served in the House of Lords.
Norman Antony Francis St John-Stevas, Baron St John of Fawsley, was a British Conservative politician, author and barrister. He served as Leader of the House of Commons in the government of Prime Minister Margaret Thatcher from 1979 to 1981. He was Member of Parliament (MP) for Chelmsford from 1964 to 1987 and was made a life peer in 1987. His surname was created by compounding those of his father (Stevas) and mother.
Wets and dries are British political terms that refer to opposing factions within the Conservative Party. The terms originated in the 1980s during the premiership of Margaret Thatcher: those who opposed some of Thatcher's more hard-line policies were often referred to by their opponents as "wets"; in response, supporters of Thatcher were referred to as "dries".
The 1990 Conservative Party leadership election was called on 14 November 1990 following the decision of Michael Heseltine, former defence and environment secretary, to challenge Margaret Thatcher, the incumbent Prime Minister of the United Kingdom, for leadership of the Conservative Party.
The 1995 Conservative Party leadership election was initiated when the incumbent leader and prime minister, John Major, resigned on 22 June 1995, in order to face a leadership challenge from his critics within the party. On 4 July 1995, he was re-elected, beating the only other candidate, the former Secretary of State for Wales, John Redwood.
Edward Heath of the Conservative Party formed the Heath ministry and was appointed Prime Minister of the United Kingdom by Queen Elizabeth II on 19 June 1970, following the 18 June general election. Heath's ministry ended after the February 1974 general election, which produced a hung parliament, leading to the formation of a minority government by Harold Wilson of the Labour Party.
Margaret Thatcher was Prime Minister of the United Kingdom from 4 May 1979 to 28 November 1990, during which time she led a Conservative majority government. She was the first woman to hold that office. During her premiership, Thatcher moved to liberalise the British economy through deregulation, privatisation, and the promotion of entrepreneurialism.
Margaret Thatcher was Prime Minister of the United Kingdom from 4 May 1979 to 28 November 1990, during which time she led a Conservative majority government. She was the first woman to hold that office. During her premiership, Thatcher moved to liberalise the British economy through deregulation, privatisation, and the promotion of entrepreneurialism.
Margaret Thatcher became the first female Leader of the Conservative Party and Leader of the Opposition after winning the 1975 leadership election, the first Conservative leadership election where the post was not vacant. A rule change to enable the election was largely prompted by dissatisfaction with the incumbent leader, Edward Heath, who had lost three of four general elections as leader, including two in 1974. After announcing her first Shadow Cabinet in February 1975, she reshuffled it twice: in January and November 1976. Minor subsequent changes were necessary to respond to various circumstances. Thatcher's Shadow Cabinet ceased to exist upon her becoming Prime Minister following the 1979 general election.
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