Margaret Thatcher, who became the first woman prime minister of Britain in 1979, continued the policy of reducing the power of the trade unions. Sympathy strikes and closing shops were banned. Union leaders had to ballot members on strike action and unions were responsible for the actions of its members.
Her government pledged to check and reverse Britain’s economic decline. In the short-term, painful measures were required.
Although direct taxes were cut to restore incentives, the budget had to be balanced, and so indirect taxes were increased. The economy was already entering a recession, but inflation was rising and interest rates had to be raised to control it. By the end of Thatcher’s first term (1979-83), unemployment in Britain was more than three million and it began to fall only in 1986. A large section of Britain’s inefficient manufacturing industry closed down. No one had predicted how severe the downturn would be.
Thatcher’s second term (1983-1987) opened with almost as many difficulties as the first. The government took a firm stand against industrial disputes and the miners’ strike that began in 1984 and lasted for 12 months without success under militant leadership.
The miners’ strike was one of the most violent and long-lasting one in British history. The outcome was uncertain, but after many twists, the union was defeated. This proved a crucial development because it ensured that the Thatcher reforms would work. In the years that followed, the Labour opposition quietly accepted the popularity and success of the trade union legislation and pledged not to reverse its key components.Click here to read more...
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