IV.

Last Term and Fall from Power

Victorious in the June 1987 elections, Thatcher became the only British prime minister in the 20th century to serve three consecutive terms. However, Thatcher’s contentious third-term legislative agenda and autocratic leadership style, which led to conflict with her ministers, produced divisions within the Conservative Party and the larger public that undermined her political support. Among the most controversial of Thatcher’s policies was the notorious Community Charge (commonly called the poll tax), a flat tax paid by all adult citizens. The tax, first introduced in Scotland in 1989 (and in England and Wales in 1990), sparked mass protests. In London a violent riot broke out. Many Britons refused to pay the tax. Thatcher, however, refused to reconsider the tax, calling it the “flagship” of her government’s program.

In another controversial move, Thatcher’s failure to support the Conservative Party’s accepted policy of committing the United Kingdom to greater economic and monetary integration with Europe attracted severe criticism. Thatcher supported British membership in the European Community (EC, a forerunner of the European Union), but she vowed that Britain would never abolish the pound and adopt a common European currency. Thatcher’s skeptical view toward European integration angered many Conservatives and inspired a strong challenge to her leadership in November 1990. The challenge, mounted by former defense minister Michael Heseltine, failed to secure Thatcher a convincing majority. She agreed to resign and was succeeded as party leader and prime minister by her protégé, John Major.