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First Thatcher ministry

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First Thatcher ministry
1979–1983
Thatcher (1981)
Date formed4 May 1979 (1979-05-04)
Date dissolved10 June 1983 (1983-06-10)
People and organisations
MonarchElizabeth II
Prime MinisterMargaret Thatcher
Prime Minister's history1979–1990
Deputy Prime Minister[note 1]
Total no. of members213 appointments
Member partyConservative Party
Status in legislatureMajority
Opposition cabinet
Opposition partyLabour Party
Opposition leader
History
Election1979 general election
Outgoing election1983 general election
Legislature terms48th UK Parliament
Budgets
  • 1979 budget
  • 1980 budget
  • 1981 budget
  • 1982 budget
  • 1983 budget
PredecessorCallaghan ministry
SuccessorSecond Thatcher ministry

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.

This article details the first government Thatcher led at the invitation of Queen Elizabeth II from 1979 to 1983.

Formation

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 Tories won the election with a majority of 44 seats and their leader Margaret Thatcher became Britain'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 20%, 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% in May 1980 to just over 13% by January 1981, and by June 1983 it had fallen to a 15-year low of 4.9%.

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 5% 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 year during the 1979-1983 period, despite the target being a reduction of 1% 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 in 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% 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% in the metal manufacture industry, 6.6% in motor vehicle manufacture, 7.1% in ship and aircraft manufacture, and 7.5% 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 4% and 12% respectively; but for the top three quintiles, it went up by 24%, 11%, and 10%, respectively.[5]

She also oversaw union reforms which saw strikes at their lowest for 30 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 MP's 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% in late 1981, with both the Tories and Labour faring dismally.

However, when the Falkland Islands (a British colony in the South Atlantic) were seized by Argentine forces in March 1982, Thatcher was swift to declare war on Argentina which was won on 14 June when the Argentines surrendered. The success of this campaign saw a swift turnaround in support for the Tory government, who by the summer of 1982 were firmly in the lead in all of the major opinion polls. 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.

Fate

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 and so she called a general election for 9 June. With all the pollsters pointing towards a Tory 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 Tories were re-elected with a 144-seat majority. The election was an unmitigated disaster for Labour, who polled a mere 27.6% 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% of the electorate voting for them, but won a mere 23 seats.

Cabinets

May 1979 to September 1981

Changes

  • January 1981 –
    • Francis Pym succeeded Norman St John-Stevas as Chancellor of the Duchy of Lancaster. Pym succeeded Angus Maude as Paymaster-General.
    • 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.
    • Leon Brittan succeeded John Biffen as Chief Secretary to the Treasury.
    • Norman St John-Stevas resigns as Minister for the Arts. His successor is not in the Cabinet.
    • the post of Secretary of State for Transport is brought into the Cabinet and Norman Fowler is given the post.

September 1981 to June 1983

In September 1981, a substantial reshuffle took place.

Changes

  • April 1982 –
  • January 1983 – Michael Heseltine succeeded John Nott as Secretary of State for Defence. Tom King succeeded Heseltine as Secretary of State for the Environment.

List of Ministers

Members of the Cabinet are in bold face.

Office Name Dates Notes
Prime Minister,
First Lord of the Treasury
and Minister for the Civil Service
Margaret Thatcher 4 May 1979  
Minister of State, Civil Service Department Paul Channon 7 May 1979 – 5 January 1981  
Barney Hayhoe 5 January 1981 – 12 November 1981  
Lord Chancellor The Lord Hailsham of St Marylebone 5 May 1979  
Lord President of the Council The Lord Soames 5 May 1979 also Leader of the House of Lords
Francis Pym 14 September 1981 also Leader of the House of Commons
John Biffen 5 April 1982 also Leader of the House of Commons
Lord Privy Seal Sir Ian Gilmour, Bt 5 May 1979  
Humphrey Atkins 14 September 1981  
The Baroness Young 6 April 1982 also Leader of the House of Lords
Chancellor of the Exchequer Sir Geoffrey Howe 5 May 1979  
Chief Secretary to the Treasury John Biffen 5 May 1979  
Leon Brittan 5 January 1981  
Minister of State, Treasury Peter Rees 6 May 1979 – 14 September 1981  
The Lord Cockfield 6 May 1979 – 6 April 1982  
Jock Bruce-Gardyne 15 September 1981 – 11 November 1981  
Barney Hayhoe 11 November 1981  
John Wakeham 6 April 1982  
Parliamentary Secretary to the Treasury Michael Jopling 5 May 1979  
Financial Secretary to the Treasury Nigel Lawson 6 May 1979  
Hon. Nicholas Ridley 30 September 1981  
Lords of the Treasury John MacGregor 7 May 1979 – 5 January 1981  
Hon. Peter Morrison 7 May 1979 – 5 January 1981  
Lord James Douglas-Hamilton 7 May 1979 – 1 October 1981  
Carol Mather 7 May 1979 – 1 October 1981  
David Waddington 16 May 1979 – 5 January 1981  
John Wakeham 9 January 1981 – 15 September 1981  
Hon. Robert Boscawen 9 January 1981 – 17 February 1983  
John Cope 9 January 1981 – 13 June 1983  
Tony Newton 1 October 1981 – 5 March 1982  
John Gummer 1 October 1981 – 6 January 1983  
Hon. Peter Brooke 1 October 1981 – 13 June 1983  
Alastair Goodlad 16 February 1982  
Donald Thompson 14 January 1983  
David Hunt 23 February 1983  
Secretary of State for Foreign and Commonwealth Affairs The Lord Carrington 5 May 1979  
Francis Pym 5 April 1982  
Minister of State for Foreign and Commonwealth Affairs Peter Blaker 5 May 1979 – 29 May 1981  
Hon. Nicholas Ridley 6 May 1979 – 29 September 1981  
Hon. Douglas Hurd 6 May 1979 – 11 June 1983 Minister of State for Europe
Richard Luce 30 September 1981 – 5 April 1982  
Cranley Onslow 5 April 1982 – 13 June 1983  
The Lord Belstead 5 April 1982 – 13 June 1983  
Timothy Raison 6 January 1983 also Minister of Overseas Development
Under-Secretary of State for Foreign and Commonwealth Affairs Richard Luce 6 May 1979  
The Lord Trefgarne 14 September 1981  
Malcolm Rifkind 6 April 1982  
Minister for Overseas Development Timothy Raison 6 January 1983  
Secretary of State for the Home Department William Whitelaw 5 May 1979 also Deputy Leader of the Conservative Party
Minister of State for Home Affairs Leon Brittan 6 May 1979 – 5 January 1981  
Timothy Raison 6 May 1979 – 6 January 1983 Minister of State for Immigration
Patrick Mayhew 5 January 1981 – 13 June 1983  
David Waddington 6 January 1983 Minister of State for Immigration
Under-Secretary of State for Home Affairs The Lord Belstead 7 May 1979 – 6 April 1982  
The Lord Elton 6 April 1982 – 13 June 1983  
David Mellor 6 January 1983  
Minister of Agriculture, Fisheries and Food Peter Walker 5 May 1979  
Minister of State for Agriculture, Fisheries and Food The Earl Ferrers 7 May 1979 – 13 June 1983  
Alick Buchanan-Smith 7 May 1979 – 13 June 1983  
Under-Secretary of State for Agriculture, Fisheries and Food Jerry Wiggin 7 May 1979 – 29 September 1981  
Peggy Fenner 14 September 1981 – 13 June 1983  
Minister for the Arts Norman St John-Stevas 5 May 1979 also Leader of the House of Commons
Paul Channon 5 January 1981  
Secretary of State for Defence Francis Pym 5 May 1979  
John Nott 5 January 1981  
Michael Heseltine 8 January 1983  
Minister of State for Defence The Lord Strathcona and Mount Royal 6 May 1979 – 5 January 1981  
The Viscount Trenchard 5 January 1981 – 29 May 1981 Office abolished 29 May 1981; Trenchard appointed Minister of State for Defence Procurement
Minister of State for the Armed Forces Peter Blaker 29 May 1981  
Minister of State for Defence Procurement The Viscount Trenchard 29 May 1981  
Geoffrey Pattie 6 January 1983  
Under-Secretary of State for the Army Barney Hayhoe 6 May 1979 – 5 January 1981  
Philip Goodhart 5 January 1981 – 19 May 1981 Office abolished 29 May 1981; Goodhart appointed Under-Secretary of State for the Armed Forces
Under-Secretary of State for the Navy Keith Speed 6 May 1979 – 18 May 1981 Office abolished 29 May 1981
Under-Secretary of State for the Air Force Geoffrey Pattie 6 May 1979 – 29 May 1981 Office abolished 29 May 1981; Pattie appointed Under-Secretary of State for Defence Procurement
Under-Secretary of State for the Armed Forces Philip Goodhart 29 May 1981 – 30 September 1981
Jerry Wiggin 15 September 1981 – 11 June 1983  
Under-Secretary of State for Defence Procurement Geoffrey Pattie 29 May 1981 – 6 January 1983  
Ian Stewart 6 January 1983  
Secretary of State for Education and Science Mark Carlisle 5 May 1979  
Sir Keith Joseph 14 September 1981  
Minister of State, Education and Science The Baroness Young 7 May 1979 – 14 September 1981  
Paul Channon 5 January 1981 – 13 June 1983  
Under-Secretary of State, Education and Science Rhodes Boyson 7 May 1979 – 13 June 1983  
Neil Macfarlane 7 May 1979 – 15 September 1981  
William Shelton 15 September 1981 – 13 June 1983  
Hon. William Waldegrave 15 September 1981 – 13 June 1983  
Secretary of State for Employment James Prior 5 May 1979  
Norman Tebbit 14 September 1981  
Minister of State, Employment The Earl of Gowrie 7 May 1979 – 15 September 1981  
Michael Alison 15 September 1981 – 13 June 1983  
Under-Secretary of State, Employment Jim Lester 7 May 1979 – 5 January 1981  
Patrick Mayhew 7 May 1979 – 5 January 1981  
David Waddington 5 January 1981 – 6 January 1983  
Hon. Peter Morrison 5 January 1981 – 13 June 1983  
John Gummer 6 January 1983  
Secretary of State for Energy David Howell 5 May 1979  
Nigel Lawson 14 September 1981  
Minister of State, Energy Hamish Gray 7 May 1979 – 13 June 1983  
Under-Secretary of State, Energy Norman Lamont 7 May 1979 – 5 September 1981  
John Moore 7 May 1979 – 13 June 1983  
David Mellor 15 September 1981 – 6 January 1983  
The Earl of Avon 6 January 1983  
Secretary of State for the Environment Michael Heseltine 5 May 1979  
Tom King 6 January 1983  
Minister of State for Local Government Tom King 6 May 1979  
The Lord Bellwin 6 January 1983  
Minister of State for Housing John Stanley 7 May 1979  
Under-Secretary of State for Sport Hector Monro 7 May 1979 – 30 September 1981  
Neil Macfarlane 15 September 1981  
Under-Secretary of State, Environment Marcus Fox 7 May 1979 – 5 January 1981  
Geoffrey Finsberg 7 May 1979 – 15 September 1981  
The Lord Bellwin 7 May 1979 – 6 January 1983  
Giles Shaw 5 January 1981 – 13 June 1983  
Sir George Young, Bt 15 September 1981  
Secretary of State for Health and Social Security Patrick Jenkin 5 May 1979  
Norman Fowler 14 September 1981  
Minister of State, Health Gerard Vaughan 7 May 1979  
Kenneth Clarke 5 March 1982  
Under-Secretary of State, Health and Social Security Sir George Young, Bt 7 May 1979 – 15 September 1981  
Lynda Chalker 7 May 1979 – 5 March 1982  
Geoffrey Finsberg 15 September 1981 – 14 June 1983  
The Lord Elton 15 September 1981 – 6 April 1982  
Tony Newton 5 March 1982  
The Lord Trefgarne 6 April 1982 – 14 June 1983  
Minister of State, Social Security Reginald Prentice 7 May 1979 – 5 January 1981  
Hugh Rossi 5 January 1981 – 12 June 1983  
Secretary of State for Industry Sir Keith Joseph, Bt 7 May 1979  
Patrick Jenkin 14 September 1981 Merged with the Office of Trade 12 June 1983
Minister of State, Industry Hon. Adam Butler 6 May 1979 – 5 January 1981  
The Viscount Trenchard 6 May 1979 – 5 January 1981  
Norman Tebbit 5 January 1981 – 14 September 1981  
Norman Lamont 14 September 1981 – 12 June 1983  
Minister of State, Industry and Information Technology Kenneth Baker 5 January 1981
Under-Secretary of State, Industry David Mitchell 6 May 1979 – 5 January 1981  
Michael Marshall 6 May 1979 – 15 September 1981  
John MacGregor 5 January 1981 – 12 June 1983  
John Wakeham 15 September 1981 – 6 April 1982  
John Butcher 6 April 1982 – 12 June 1983  
Chancellor of the Duchy of Lancaster Norman St John-Stevas 5 May 1979 also Leader of the House of Commons
Francis Pym 5 January 1981 also Leader of the House of Commons
The Baroness Young 14 September 1981 also Leader of the House of Lords
Cecil Parkinson 6 April 1982  
Secretary of State for Northern Ireland Humphrey Atkins 5 May 1979  
James Prior 14 September 1981  
Minister of State, Northern Ireland Michael Alison 7 May 1979 – 15 September 1981  
Hugh Rossi 7 May 1979 – 5 January 1981  
Hon. Adam Butler 5 January 1981 – 10 June 1983  
The Earl of Gowrie 15 September 1981 – 10 June 1983  
Under-Secretary of State, Northern Ireland The Lord Elton 7 May 1979 – 15 September 1981  
Philip Goodhart 7 May 1979 – 5 January 1981  
Giles Shaw 7 May 1979 – 5 January 1981  
David Mitchell 5 January 1981 – 13 June 1983  
John Patten 5 January 1981 – 13 June 1983  
Nicholas Scott 15 September 1981 – June 1983  
Paymaster-General Angus Maude 5 May 1979  
Francis Pym 5 January 1981  
Cecil Parkinson 14 September 1981  
Secretary of State for Scotland Hon. George Younger 5 May 1979  
Minister of State for Scotland The Earl of Mansfield 7 May 1979 – 13 June 1983  
Under-Secretary of State for Scotland Alexander Fletcher 7 May 1979 – 14 June 1983  
Russell Fairgrieve 7 May 1979 – 15 September 1981  
Malcolm Rifkind 7 May 1979 – 6 April 1982  
Allan Stewart 15 September 1981 – June 1983  
John MacKay 6 April 1982 – June 1983  
Secretary of State for Trade John Nott 5 May 1979  
John Biffen 5 January 1981  
The Lord Cockfield 6 April 1982
Minister for Consumer Affairs Sally Oppenheim-Barnes 5 May 1979  
Gerard Vaughan 5 March 1982  
Minister for Trade Cecil Parkinson 7 May 1979  
Peter Rees 14 September 1981  
Under-Secretary of State for Trade Norman Tebbit 5 May 1979 – 5 January 1981  
Reginald Eyre 7 May 1979 – 5 March 1982
The Lord Trefgarne 5 January 1981 – 15 September 1981
Iain Sproat 15 September 1981 – 12 June 1983
Minister of Transport Norman Fowler 11 May 1979 – 5 January 1981 became Secretary of State for Transport
Secretary of State for Transport Norman Fowler 5 January 1981  
David Howell 14 September 1981  
Parliamentary Secretary for Transport Kenneth Clarke 7 May 1979 – 5 January 1981 became Under-Secretary of State for Transport
Under-Secretary of State for Transport Kenneth Clarke 5 January 1981 – 5 March 1982  
Lynda Chalker 5 March 1982 – June 1983  
Reginald Eyre 5 March 1982 – 11 June 1983  
Secretary of State for Wales Nicholas Edwards 5 May 1979  
Minister of State for Wales John Stradling Thomas 17 February 1983 – June 1983  
Under-Secretary of State for Wales Michael Roberts 7 May 1979 – 6 January 1983  
Wyn Roberts 7 May 1979 – June 1983  
Attorney General Michael Havers 5 May 1979  
Solicitor General Sir Ian Percival 5 May 1979  
Lord Advocate The Lord Mackay of Clashfern 5 May 1979  
Solicitor General for Scotland Nicholas Fairbairn 7 May 1979  
Peter Fraser 28 January 1982  
Treasurer of the Household John Stradling Thomas 6 May 1979  
Hon. Anthony Berry 17 February 1983  
Comptroller of the Household Spencer Le Marchant 7 May 1979  
Hon. Anthony Berry 30 September 1981  
Carol Mather 17 February 1983  
Vice-Chamberlain of the Household Hon. Anthony Berry 7 May 1979  
Carol Mather 30 September 1981  
Hon. Robert Boscawen 17 February 1983  
Captain of the Gentlemen-at-Arms The Lord Denham 6 May 1979  
Captain of the Yeomen of the Guard The Lord Sandys 6 May 1979  
The Earl of Swinton 20 October 1982  
Lords-in-Waiting The Viscount Long 9 May 1979 – June 1983  
The Lord Mowbray and Stourton 9 May 1979 – 22 September 1980  
The Lord Lyell 9 May 1979 – June 1983  
The Lord Cullen of Ashbourne 9 May 1979 – 27 May 1982  
The Lord Trefgarne 9 May 1979 – 5 January 1981  
The Earl of Avon 22 September 1980 – 6 January 1983  
The Lord Skelmersdale 9 January 1981 – June 1983  
The Lord Glenarthur 27 May 1982 – 10 June 1983  
The Lord Lucas of Chilworth 6 January 1983 – June 1983  

Notes

References

  • Hennessy, Peter (2001), "A Tigress Surrounded by Hamsters: Margaret Thatcher, 1979–90", The Prime Minister: The Office and Its Holders since 1945, Penguin Group, ISBN 978-0-14-028393-8
  • British Cabinet and Government Membership, archived from the original on 16 January 2009, retrieved 20 April 2012
  • British Government 1979–2005, archived from the original on 7 February 2012, retrieved 20 November 2007
Preceded by Government of the United Kingdom
1979–1983
Succeeded by
  1. ^ Buiter, Willem; Miller, Marcus; Sachs, Jeffrey; Branson, William (1983). "Changing the Rules: Economic Consequences of the Thatcher Regime" (PDF). Brookings Papers on Economic Activity. 1983 (2): 323–234. doi:10.2307/2534293. JSTOR 2534293.
  2. ^ Buiter, Willem; Miller, Marcus; Sachs, Jeffrey; Branson, William (1983). "Changing the Rules: Economic Consequences of the Thatcher Regime" (PDF). Brookings Papers on Economic Activity. 1983 (2): 332. doi:10.2307/2534293. JSTOR 2534293.
  3. ^ Buiter, Willem; Miller, Marcus; Sachs, Jeffrey; Branson, William (1983). "Changing the Rules: Economic Consequences of the Thatcher Regime" (PDF). Brookings Papers on Economic Activity. 1983 (2): 337. doi:10.2307/2534293. JSTOR 2534293.
  4. ^ Bean, Charles; Symons, James (1989). "Ten Years of Mrs. T.". NBER Macroeconomics Annual. 4: 38. doi:10.1086/654096.
  5. ^ Bean, Charles; Symons, James (1989). "Ten Years of Mrs. T.". NBER Macroeconomics Annual. 4: 53. doi:10.1086/654096.