United Kingdom

Despite losing by more than 200,000 votes to the Conservatives, Labour and Wilson returned as a minority government and promptly made peace by granting the miners’ demands. Wilson’s policies were confirmed on October 10, 1974, in a second election, when his tiny majority, based upon cooperation from the Scottish National Party and the Plaid Cymru (Welsh Nationalist Party) as well as the Liberals, was increased to an almost workable margin of 20. The Labour government faced severe economic challenges—including post-World War II record levels of unemployment and inflation—yet Wilson was able to renegotiate British membership in the EEC, which was confirmed in a referendum in June 1975. However, neither Wilson nor James Callaghan, who succeeded him on April 5, 1976, was able to come to terms with the labour unions, which were as willing to embarrass a Labour government as a Conservative one. Labour’s parliamentary position was precarious, and the party lost its governing majority through a series of by-election defeats and defections. Labour survived through what became known as the “Lib-Lab Pact,” an agreement between Callaghan and Liberal Party leader David Steel, which lasted until August 1978. Union unrest, induced by rapidly increasing prices, made the late 1970s a period of almost endless industrial conflict, culminating at the end of 1978 in the “Winter of Discontent,” a series of bitter disputes, which the government seemed unable to control and which angered the voters. Meanwhile, Labour’s slender majority in the House of Commons eroded with the defection of the Liberal and nationalist parties following the defeat of referenda in Wales and Scotland that would have created devolved assemblies. On March 28, 1979, Callaghan was forced from office after losing a vote of confidence in the House of Commons by a single vote (310–311), the first such dismissal of a prime minister since MacDonald in 1924. Bentley Brinkerhoff Gilbert Patrick Joyce

The Margaret Thatcher government (1979–90)

The Falkland Islands War, the 1983 election, and privatization

In the subsequent election, in May 1979, the Conservatives under the leadership of Margaret Thatcher were swept into power with the largest electoral swing since 1945, securing a 43-seat majority. After an extremely shaky start to her administration, Thatcher achieved popularity by sending the armed forces to expel an Argentine force from the Falkland Islands (see Falkland Islands War) in the spring of 1982, on the strength of which she won triumphant reelection in June 1983, her party capturing nearly 400 seats in the House of Commons and a 144-seat majority. The opposition Labour Party suffered its worst performance since 1918, winning only 27.6 percent of the vote—only 2.2 percent more than an alliance of the Liberals and the Social Democratic Party, a party formed by Labour defectors.

Margaret Thatcher, 1983.AP

Riding this wave of success, the Thatcher government proceeded with a thoroughgoing privatization of the economy, most notably the railway system. Like the accompanying deindustrialization of what had been a manufacturing Britain, this transformation of the transportation infrastructure had immense consequences, resulting in a public transport system that was widely perceived as chaotic and inefficient, as well as in a great increase in private automobile use and in road building. Thatcher’s advocacy of what eventually became known as neoliberalism was in fact part of a similar international response to changes in the global economy driven by the United States during the presidency of Ronald Reagan (predicated on the free market and supply-side economics), with whom Thatcher formed a strong personal alliance. Deindustrialization and privatization began to change the face of Britain, one fairly immediate outcome being mass unemployment.

Reagan, Ronald; Thatcher, MargaretRonald Reagan and Margaret Thatcher at the White House, Washington, D.C., July 17, 1987.Courtesy Ronald Reagan Library

Racial discrimination and the 1981 England riots