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June 1979 Pensions would be based not on the ‘movement in prices + earnings, whichever is greater’ but solely on prices – Pensioners set to get poorer relative to those in work
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June 1979 Government Incomes policy was dropped
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1980 Budget large pay awards for police + army
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1981 Productivity increased amongst those still in work
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1981 Budget 25p lower rate of tax introduced by Labour in 1978 was abolished
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Consequences of economic recession wave of riots across inner-city London, Liverpool, Manchester, Leeds + Bristol in summer 1981
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1982 Thatcher’s continuation in office threatened. Opinion polls showed the Prime Minister’s personal popularity + that of her govt. had declined significantly.
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1982 unemployment > 3 million
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Although direct taxes fell, the overall tax burden increased from 34% of GDP in 1978-79 to 40% of GDP in 1982/3
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Inflation down to 10% 1982 – partly due to high unemployment
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Employment Act 1982 provided compensation from public funds to people dismissed from closed shops. It also made ‘union labour only’ requirements in contracts illegal. Trade unions became liable for damages if they were the cause of unlawful industrial actions. It gave employers legal redress against industrial action where the action was not wholly or mainly about employment matters (i.e. strikes which could be considered political)
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Inflation 5% in 1983
