Despite being unable to resolve the Irish problem, Thatcher succeeded in 1987 in winning an unprecedented third general election, and in January 1988 she surpassed Asquith as the longest continually serving prime minister since Lord Liverpool (1812–27). Thatcher’s electoral success came from her extraordinary capacity for leadership and the development of “Thatcherism.” Responding to widespread disillusionment with Labour government and the state, Thatcher was able to tap into, and give leadership to, a politics of freedom and choice that expressed the desires of many people in the 1980s. In the wake of the debacle that the 1970s had been for the political left and trade union movement, Thatcherism’s variant of contemporary free-market neoliberalism gained increasing momentum. It effectively ended the postwar accommodation sometimes referred to as the corporate state, through which government, the unions, and business enabled a form of state-managed capitalism to develop. In its movement away from that accord, Britain foreshadowed developments in central and eastern Europe after the demise of communism there in 1989.
Thatcher’s premiership, however, did not survive her third term. She alienated even fellow Conservatives with her insistence on replacing local property taxes with a uniform poll tax and with her unwillingness to fully integrate the pound into a common European currency. By the end of 1989, voter discontent was manifest in by-elections, and in November 1990 Thatcher faced serious opposition for the first time in the Conservative party’s annual vote for selection of a leader. When she did not receive the required majority, she withdrew, and John Major, the chancellor of the Exchequer since October 1989, was chosen on November 27. Thatcher resigned as prime minister the following day and was replaced by Major.
The government of John Major (1990–97)
“Black Wednesday,” epidemic scandals, and Major’s “Citizens Charter”
Despite having presided over the country’s longest recession since the 1930s and owing partly to the Labour Party’s overconfidence, the Conservatives won their fourth consecutive election in April 1992, albeit with a diminished majority of 21 in Parliament. That they did so was largely a result of the ongoing conflict within Labour as it continued to undergo “modernization.” As the recession lingered, the popularity of Major—and of the Conservatives—plummeted, and the party fared poorly in by-elections and in local elections. Major’s economic policies were questioned after the “Black Wednesday” fiasco of September 16, 1992, when he was forced to withdraw Britain from the European exchange-rate mechanism and devalue the pound. Despite having pledged not to increase taxes during the 1992 campaign, Major supported a series of increases to restore Britain’s financial equilibrium. When he sought to secure passage of the Treaty on European Union in 1993, his grip on power was challenged. Twenty-three Conservatives voted against a government resolution on the treaty, causing the government’s defeat and compelling Major to call a vote of confidence to pass the treaty.
Tory troubles mounted with scandals in local governments, particularly in Westminster in 1994, and thereafter Major was seemingly unable to shake off the growing reputation of his government not only for economic mismanagement but also for corruption and moral hypocrisy. A seemingly unending series of financial and sexual scandals took their toll, and paper offensives like Major’s “Citizens Charter,” attempting to stop the growing rot of concern about the efficiency and responsibility of privatized industry by laying down citizens’ rights, made little impact.
“Mad cow disease”
As criticism of his leadership mounted within the Conservative Party, Major resigned as party leader in June 1995. In the ensuing leadership election, Major solidified his position—though 89 Conservative members of Parliament voted for his opponent and 22 others abstained or spoiled their ballots. Major’s government was also severely criticized for its handling of the crisis involving “mad cow disease,” in which it was discovered that large numbers of cattle in the human food supply in Britain were infected with bovine spongiform encephalopathy. Facing a rejuvenated Labour Party under the leadership of Tony Blair, the Conservatives suffered a crushing defeat in the general election of 1997, winning only 165 seats, their fewest since 1906. Labour’s 419 seats and its 179-seat majority were its largest in British history.
The Tony Blair government (1997–2007)
The struggle for control of Labour
