The second budget of 1980

1. Thatcher’s First term in governmentAim – to learn the key events, successes and failures of Thatcher and how this affected the Conservatives and Britain On your sugar paper draw a line horizontally or vertically from 1979 to 1983. Label one side as successes and one side as failures. Add on the first budget and its details. Add any other information you know.

2. The second budget of 1980 • Inflation hit 21.9% by the end of 1980. Cuts were imposed on government spending in higher education, prescription charges were raised and taxes on petrol and drink rose. Subsidies to nationalised industries were also reduced. However, these cuts didn’t counteract the promises Thatcher was already carrying out to increase defence expenditure and honour pay awards that Callaghan had promised and inflation remained high. Unemployment reached 2.8 million. Whole areas of the country were being de-industrialised as companies went bust. Thatcher and Howe saw this as a necessary evil to let the inefficient economy collapse. • Thatcher moved people out of posts who were resisting cuts, like Francis Pym in defence. • Add the key facts onto your timeline under 1980 Second Budget ‘You turn if you want to – the lady’s not for turning’ http://www.youtube.com/watch?v=rQ-M0KEFm9I What does this clip suggest?

3. The third budget of 1981 • To mark a real move away from Keynesianism in the worst downturn since WWII Howe cut spending even further and rose taxes • They hoped to squeeze inflation (which was really from Britain changing from an industrial economy to a service economy) • Economists and back benchers denounced the budget • Inflation fell to 4.5% in 1983 • Add the key facts onto your timeline Which budget was most significant, the first, second or third and why?

4. Riots • Clip - note down the key facts http://www.youtube.com/watch?v=PGTr5DYcQmw • Why did they happen? Top p.158 • Similarities/differences to previous/succeeding riots?

5. EEC • Britain was the largest contributor to the EEC despite being a smaller economy than Germany or France. They paid in £1000 million • http://www.youtube.com/watch?v=0vUDrUYTsHQ – towards end • http://www.youtube.com/watch?NR=1&v=pd4KszzlzAo&feature=endscreen – beginning • How did Thatcher go about rectifying this? • What would the new French president D’Estaing think?

6. Falklands • Where – an island 400 miles off Argentina • What – thinly populated by farmers and fishermen. The capital (Port Stanley) was a communication centre for the Royal Navy. Small British garrison was stationed on the islands • http://www.youtube.com/watch?feature=endscreen&v=C0WQBrKQiAU&NR=1 2 mins 30s • Where/What/Why/Impact

7. 1983 General Election • http://www.youtube.com/watch?v=7noHkLaZ5VI • Why did she win? • What was the role of the media like in this campaign?

8. Thatcher’s First term in governmentAim – to learn the key events, successes and failures of Thatcher and how this affected the Conservatives and Britain You should have these key events: Budgets of 1979, 1980, 1981, 1981 Riots, EEC, Falklands, 1983 General Election • What Successes? • What Failures? • How this affected the Conservatives (wets e.g. Francis Pym formally of defence and those loyal to Thatcher e.g. Howe)? • How did this affect Britain?

9. Quiz!