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Why did Thatcher resign as Prime Minister in November 1990?
Reason

What was it?

How did this effect her
resignation?

The Poll Tax

The Local Government Finance Act
of 1988 introduced Community
charge, aka 'Poll Tax'; replaced rates
with flat-rate tax on individuals; some
in her cabinet opposed as they
believed it to be hugely unpopular;
first introduced in Scotland in 1989
and millions refused to pay it; 31
March 1990, riots in Trafalgar Square
before it was due to take place in
England; 400 policemen hurt and 300
arrested

Thatcher's decision to press ahead
with said charges suggested to her
critics that her style of politics was
increasingly dictatorial

Economic Difficulties

October 1987, stock market crash
wiped out 24% off share prices,
CofE, Lawson, believed this would
trigger a recession so reduced
income tax rates in the 1988 budget;
caused a customer spending boom
which pushed up prices; by June
1989, inflation was at 8
...
7% whereas
Tory's had 33
...
Her
resignation was influenced by the Poll Tax, economic difficulties as well as divisions over Europe,
however the most significant was her growing personal isolation and unpopularity amongst not only
the public, but her own Party
...
The Local Government Finance Act of 1988
introduced the Community Charge, aka the Poll Tax, which introduced a flat rate tax on every
individual
...
It was introduced in Scotland
first in 1989, and millions of Scots were encouraged by the Scottish National Party to refuse to pay
...
However, on the 31st March, a large
demonstration against it was located in Trafalgar Square but turned violent, causing 400 policemen
to be injured and 300 people to be arrested
...
This caused a
major loss of support for the Thatcher government, which the Conservatives feared would make
them lose the 1992 election
...

The economic state at the time also contributed to Thatcher's resignation as with the economic
state, those who she intended on supporting ended up being harmed by additional costs
...
To tackle this, in his 1988 budget he reduced income tax rates, however, this
only triggered a customer spending boom which increased prices
...
3%
...
Thatcher's home-buyers, those who she believed were
hardworking and deserved easy homing, found themselves paying heavily for the houses they felt
they had been encouraged to buy
...

Another factor that affected Thatcher's position and caused her to resign in 1990 was the divisions
over Europe, as it led to her demoting Howe, one of her only allies within the party, which reduced
support further
...
However, she later regretted the
decision as it committed the members to work towards closer monetary and political union
...
By June 1989,
Thatcher had demoted Howe by giving him a meaningless title of deputy Prime Minister; this was
the first major step towards her isolation from her party as Howe was one of her main, and only,
allies within the party
...
Also in October 1989,
Thatcher did allow Britain to join the ERM because she was persuaded by new Chancellor of the
Exchequer, Major, that it would help tackle inflation, which was one of the biggest issues, but later
denounced plans of further integration of Europe
...

With these other factors in mind, Thatcher's growing personal isolation and unpopularity was by far
the key reason for her resignation in November 1990, as it was at this point, where by-elections
and polls were taking place, that the Conservative Party truly understood how badly they were in
decline with Thatcher still as their leader
...
A similar
result occurred again in June 1989, in the European Parliament election, with Labour winning with
38
...
5%
...
This showed that even her party was against her as a person; many believed she was
too stubborn and her policies were poorly designed
...

To conclude, there were many factors associated with the reason for Thatcher's resignation from
the Conservative Party in November 1990, however, it was her growing personal unpopularity and
isolation that pushed her to step down from her leadership
...




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