First Thatcher ministry


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.
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.
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.
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.
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.
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 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



In September 1981, a substantial reshuffle took place.
  • Margaret Thatcher – Prime Minister
  • William Whitelaw – Home Secretary
  • Francis Pym – Lord President of the Council
  • The Lord Hailsham of St Marylebone – Lord Chancellor
  • Humphrey Atkins – Lord Privy Seal
  • Sir Geoffrey Howe – Chancellor of the Exchequer
  • Leon Brittan – Chief Secretary to the Treasury
  • The Lord Carrington – Secretary of State for Foreign and Commonwealth Affairs
  • Peter Walker – Minister of Agriculture, Fisheries and Food
  • John Nott – Secretary of State for Defence
  • Keith Joseph – Secretary of State for Education and Science
  • Norman Tebbit – Secretary of State for Employment
  • Nigel Lawson – Secretary of State for Energy
  • Michael Heseltine – Secretary of State for the Environment
  • Norman Fowler – Secretary of State for Health and Social Security
  • Patrick Jenkin – Secretary of State for Industry
  • The Baroness Young – Chancellor of the Duchy of Lancaster
  • James Prior – Secretary of State for Northern Ireland
  • Cecil Parkinson – Paymaster-General
  • George Younger – Secretary of State for Scotland
  • John Biffen – Secretary of State for Trade and President of the Board of Trade
  • David Howell – Secretary of State for Transport
  • Nicholas Edwards – Secretary of State for Wales

    Changes

  • April 1982
  • *Francis Pym succeeded Lord Carrington as Foreign Secretary. John Biffen succeeded Pym as Lord President of the Council.
  • *Baroness Young succeeded Humphrey Atkins as Lord Privy Seal. Cecil Parkinson succeeded Young as Chancellor of the Duchy of Lancaster.
  • *Lord Cockfield succeeded John Biffen as Secretary of State for Trade.
  • January 1983Michael 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.
OfficeNameDatesNotes
Prime Minister,
First Lord of the Treasury
and Minister for the Civil Service
Margaret Thatcher4 May 1979
Minister of State, Civil Service DepartmentPaul Channon7 May 1979 – 5 January 1981
Minister of State, Civil Service DepartmentBarney Hayhoe5 January 1981 – 12 November 1981
Lord ChancellorThe Lord Hailsham of St Marylebone5 May 1979
Lord President of the CouncilThe Lord Soames5 May 1979also Leader of the House of Lords
Lord President of the CouncilFrancis Pym14 September 1981also Leader of the House of Commons
Lord President of the CouncilJohn Biffen5 April 1982also Leader of the House of Commons
Lord Privy SealSir Ian Gilmour, Bt5 May 1979
Lord Privy SealHumphrey Atkins14 September 1981
Lord Privy SealThe Baroness Young6 April 1982also Leader of the House of Lords
Chancellor of the ExchequerSir Geoffrey Howe5 May 1979
Chief Secretary to the TreasuryJohn Biffen5 May 1979
Chief Secretary to the TreasuryLeon Brittan5 January 1981
Minister of State, TreasuryPeter Rees6 May 1979 – 14 September 1981
Minister of State, TreasuryThe Lord Cockfield6 May 1979 – 6 April 1982
Minister of State, TreasuryJock Bruce-Gardyne15 September 1981 – 11 November 1981
Minister of State, TreasuryBarney Hayhoe11 November 1981
Minister of State, TreasuryJohn Wakeham6 April 1982
Parliamentary Secretary to the TreasuryMichael Jopling5 May 1979
Financial Secretary to the TreasuryNigel Lawson6 May 1979
Financial Secretary to the TreasuryHon. Nicholas Ridley30 September 1981
Lords of the TreasuryJohn MacGregor7 May 1979 – 5 January 1981
Lords of the TreasuryHon. Peter Morrison7 May 1979 – 5 January 1981
Lords of the TreasuryLord James Douglas-Hamilton7 May 1979 – 1 October 1981
Lords of the TreasuryCarol Mather7 May 1979 – 1 October 1981
Lords of the TreasuryDavid Waddington16 May 1979 – 5 January 1981
Lords of the TreasuryJohn Wakeham9 January 1981 – 15 September 1981
Lords of the TreasuryHon. Robert Boscawen9 January 1981 – 17 February 1983
Lords of the TreasuryJohn Cope9 January 1981 – 13 June 1983
Lords of the TreasuryTony Newton1 October 1981 – 5 March 1982
Lords of the TreasuryJohn Gummer1 October 1981 – 6 January 1983
Lords of the TreasuryHon. Peter Brooke1 October 1981 – 13 June 1983
Lords of the TreasuryAlastair Goodlad16 February 1982
Lords of the TreasuryDonald Thompson14 January 1983
Lords of the TreasuryDavid Hunt23 February 1983
Secretary of State for Foreign and Commonwealth AffairsThe Lord Carrington5 May 1979
Secretary of State for Foreign and Commonwealth AffairsFrancis Pym5 April 1982
Minister of State for Foreign and Commonwealth AffairsPeter Blaker5 May 1979 – 29 May 1981
Minister of State for Foreign and Commonwealth AffairsHon. Nicholas Ridley6 May 1979 – 29 September 1981
Minister of State for Foreign and Commonwealth AffairsHon. Douglas Hurd6 May 1979 – 11 June 1983Minister of State for Europe
Minister of State for Foreign and Commonwealth AffairsRichard Luce30 September 1981 – 5 April 1982
Minister of State for Foreign and Commonwealth AffairsCranley Onslow5 April 1982 – 13 June 1983
Minister of State for Foreign and Commonwealth AffairsThe Lord Belstead5 April 1982 – 13 June 1983
Minister of State for Foreign and Commonwealth AffairsTimothy Raison6 January 1983also Minister of Overseas Development
Under-Secretary of State for Foreign and Commonwealth AffairsRichard Luce6 May 1979
Under-Secretary of State for Foreign and Commonwealth AffairsThe Lord Trefgarne14 September 1981
Under-Secretary of State for Foreign and Commonwealth AffairsMalcolm Rifkind6 April 1982
Minister for Overseas DevelopmentTimothy Raison6 January 1983
Secretary of State for the Home DepartmentWilliam Whitelaw5 May 1979also Deputy Leader of the Conservative Party
Minister of State for Home AffairsLeon Brittan6 May 1979 – 5 January 1981
Minister of State for Home AffairsTimothy Raison6 May 1979 – 6 January 1983Minister of State for Immigration
Minister of State for Home AffairsPatrick Mayhew5 January 1981 – 13 June 1983
Minister of State for Home AffairsDavid Waddington6 January 1983Minister of State for Immigration
Under-Secretary of State for Home AffairsThe Lord Belstead7 May 1979 – 6 April 1982
Under-Secretary of State for Home AffairsThe Lord Elton6 April 1982 – 13 June 1983
Under-Secretary of State for Home AffairsDavid Mellor6 January 1983
Minister of Agriculture, Fisheries and FoodPeter Walker5 May 1979
Minister of State for Agriculture, Fisheries and FoodThe Earl Ferrers7 May 1979 – 13 June 1983
Minister of State for Agriculture, Fisheries and FoodAlick Buchanan-Smith7 May 1979 – 13 June 1983
Under-Secretary of State for Agriculture, Fisheries and FoodJerry Wiggin7 May 1979 – 29 September 1981
Under-Secretary of State for Agriculture, Fisheries and FoodPeggy Fenner14 September 1981 – 13 June 1983
Minister for the ArtsNorman St John-Stevas5 May 1979also Leader of the House of Commons
Minister for the ArtsPaul Channon5 January 1981
Secretary of State for DefenceFrancis Pym5 May 1979
Secretary of State for DefenceJohn Nott5 January 1981
Secretary of State for DefenceMichael Heseltine8 January 1983
Minister of State for DefenceThe Lord Strathcona and Mount Royal6 May 1979 – 5 January 1981
Minister of State for DefenceThe Viscount Trenchard5 January 1981 – 29 May 1981Office abolished 29 May 1981; Trenchard appointed Minister of State for Defence Procurement
Minister of State for the Armed ForcesPeter Blaker29 May 1981
Minister of State for Defence ProcurementThe Viscount Trenchard29 May 1981
Minister of State for Defence ProcurementGeoffrey Pattie6 January 1983
Under-Secretary of State for the ArmyBarney Hayhoe6 May 1979 – 5 January 1981
Under-Secretary of State for the ArmyPhilip Goodhart5 January 1981 – 19 May 1981Office abolished 29 May 1981; Goodhart appointed Under-Secretary of State for the Armed Forces
Under-Secretary of State for the NavyKeith Speed6 May 1979 – 18 May 1981Office abolished 29 May 1981
Under-Secretary of State for the Air ForceGeoffrey Pattie6 May 1979 – 29 May 1981Office abolished 29 May 1981; Pattie appointed Under-Secretary of State for Defence Procurement
Under-Secretary of State for the Armed ForcesPhilip Goodhart29 May 1981 – 30 September 1981
Under-Secretary of State for the Armed ForcesJerry Wiggin15 September 1981 – 11 June 1983
Under-Secretary of State for Defence ProcurementGeoffrey Pattie29 May 1981 – 6 January 1983
Under-Secretary of State for Defence ProcurementIan Stewart6 January 1983
Secretary of State for Education and ScienceMark Carlisle5 May 1979
Secretary of State for Education and ScienceSir Keith Joseph14 September 1981
Minister of State, Education and ScienceThe Baroness Young7 May 1979 – 14 September 1981
Minister of State, Education and SciencePaul Channon5 January 1981 – 13 June 1983
Under-Secretary of State, Education and ScienceRhodes Boyson7 May 1979 – 13 June 1983
Under-Secretary of State, Education and ScienceNeil Macfarlane7 May 1979 – 15 September 1981
Under-Secretary of State, Education and ScienceWilliam Shelton15 September 1981 – 13 June 1983
Under-Secretary of State, Education and ScienceHon. William Waldegrave15 September 1981 – 13 June 1983
Secretary of State for EmploymentJames Prior5 May 1979
Secretary of State for EmploymentNorman Tebbit14 September 1981
Minister of State, EmploymentThe Earl of Gowrie7 May 1979 – 15 September 1981
Minister of State, EmploymentMichael Alison15 September 1981 – 13 June 1983
Under-Secretary of State, EmploymentJim Lester7 May 1979 – 5 January 1981
Under-Secretary of State, EmploymentPatrick Mayhew7 May 1979 – 5 January 1981
Under-Secretary of State, EmploymentDavid Waddington5 January 1981 – 6 January 1983
Under-Secretary of State, EmploymentHon. Peter Morrison5 January 1981 – 13 June 1983
Under-Secretary of State, EmploymentJohn Gummer6 January 1983
Secretary of State for EnergyDavid Howell5 May 1979
Secretary of State for EnergyNigel Lawson14 September 1981
Minister of State, EnergyHamish Gray7 May 1979 – 13 June 1983
Under-Secretary of State, EnergyNorman Lamont7 May 1979 – 5 September 1981
Under-Secretary of State, EnergyJohn Moore7 May 1979 – 13 June 1983
Under-Secretary of State, EnergyDavid Mellor15 September 1981 – 6 January 1983
Under-Secretary of State, EnergyThe Earl of Avon6 January 1983
Secretary of State for the EnvironmentMichael Heseltine5 May 1979
Secretary of State for the EnvironmentTom King6 January 1983
Minister of State for Local GovernmentTom King6 May 1979
Minister of State for Local GovernmentThe Lord Bellwin6 January 1983
Minister of State for HousingJohn Stanley7 May 1979
Under-Secretary of State for SportHector Monro7 May 1979 – 30 September 1981
Under-Secretary of State for SportNeil Macfarlane15 September 1981
Under-Secretary of State, EnvironmentMarcus Fox7 May 1979 – 5 January 1981
Under-Secretary of State, EnvironmentGeoffrey Finsberg7 May 1979 – 15 September 1981
Under-Secretary of State, EnvironmentThe Lord Bellwin7 May 1979 – 6 January 1983
Under-Secretary of State, EnvironmentGiles Shaw5 January 1981 – 13 June 1983
Under-Secretary of State, EnvironmentSir George Young, Bt15 September 1981
Secretary of State for Health and Social SecurityPatrick Jenkin5 May 1979
Secretary of State for Health and Social SecurityNorman Fowler14 September 1981
Minister of State, HealthGerard Vaughan7 May 1979
Minister of State, HealthKenneth Clarke5 March 1982
Under-Secretary of State, Health and Social SecuritySir George Young, Bt7 May 1979 – 15 September 1981
Under-Secretary of State, Health and Social SecurityLynda Chalker7 May 1979 – 5 March 1982
Under-Secretary of State, Health and Social SecurityGeoffrey Finsberg15 September 1981 – 14 June 1983
Under-Secretary of State, Health and Social SecurityThe Lord Elton15 September 1981 – 6 April 1982
Under-Secretary of State, Health and Social SecurityTony Newton5 March 1982
Under-Secretary of State, Health and Social SecurityThe Lord Trefgarne6 April 1982 – 14 June 1983
Minister of State, Social SecurityReginald Prentice7 May 1979 – 5 January 1981
Minister of State, Social SecurityHugh Rossi5 January 1981 – 12 June 1983
Secretary of State for IndustrySir Keith Joseph, Bt7 May 1979
Secretary of State for IndustryPatrick Jenkin14 September 1981Merged with the Office of Trade 12 June 1983
Minister of State, IndustryHon. Adam Butler6 May 1979 – 5 January 1981
Minister of State, IndustryThe Viscount Trenchard6 May 1979 – 5 January 1981
Minister of State, IndustryNorman Tebbit5 January 1981 – 14 September 1981
Minister of State, IndustryNorman Lamont14 September 1981 – 12 June 1983
Minister of State, Industry and Information TechnologyKenneth Baker5 January 1981
Under-Secretary of State, IndustryDavid Mitchell6 May 1979 – 5 January 1981
Under-Secretary of State, IndustryMichael Marshall6 May 1979 – 15 September 1981
Under-Secretary of State, IndustryJohn MacGregor5 January 1981 – 12 June 1983
Under-Secretary of State, IndustryJohn Wakeham15 September 1981 – 6 April 1982
Under-Secretary of State, IndustryJohn Butcher6 April 1982 – 12 June 1983
Chancellor of the Duchy of LancasterNorman St John-Stevas5 May 1979also Leader of the House of Commons
Chancellor of the Duchy of LancasterFrancis Pym5 January 1981also Leader of the House of Commons
Chancellor of the Duchy of LancasterThe Baroness Young14 September 1981also Leader of the House of Lords
Chancellor of the Duchy of LancasterCecil Parkinson6 April 1982
Secretary of State for Northern IrelandHumphrey Atkins5 May 1979
Secretary of State for Northern IrelandJames Prior14 September 1981
Minister of State, Northern IrelandMichael Alison7 May 1979 – 15 September 1981
Minister of State, Northern IrelandHugh Rossi7 May 1979 – 5 January 1981
Minister of State, Northern IrelandHon. Adam Butler5 January 1981 – 10 June 1983
Minister of State, Northern IrelandThe Earl of Gowrie15 September 1981 – 10 June 1983
Under-Secretary of State, Northern IrelandThe Lord Elton7 May 1979 – 15 September 1981
Under-Secretary of State, Northern IrelandPhilip Goodhart7 May 1979 – 5 January 1981
Under-Secretary of State, Northern IrelandGiles Shaw7 May 1979 – 5 January 1981
Under-Secretary of State, Northern IrelandDavid Mitchell5 January 1981 – 13 June 1983
Under-Secretary of State, Northern IrelandJohn Patten5 January 1981 – 13 June 1983
Under-Secretary of State, Northern IrelandNicholas Scott15 September 1981 – June 1983
Paymaster-GeneralAngus Maude5 May 1979
Paymaster-GeneralFrancis Pym5 January 1981
Paymaster-GeneralCecil Parkinson14 September 1981
Secretary of State for ScotlandHon. George Younger5 May 1979
Minister of State for ScotlandThe Earl of Mansfield7 May 1979 – 13 June 1983
Under-Secretary of State for ScotlandAlexander Fletcher7 May 1979 – 14 June 1983
Under-Secretary of State for ScotlandRussell Fairgrieve7 May 1979 – 15 September 1981
Under-Secretary of State for ScotlandMalcolm Rifkind7 May 1979 – 6 April 1982
Under-Secretary of State for ScotlandAllan Stewart15 September 1981 – June 1983
Under-Secretary of State for ScotlandJohn MacKay6 April 1982 – June 1983
Secretary of State for TradeJohn Nott5 May 1979
Secretary of State for TradeJohn Biffen5 January 1981
Secretary of State for TradeThe Lord Cockfield6 April 1982
Minister for Consumer AffairsSally Oppenheim-Barnes5 May 1979
Minister for Consumer AffairsGerard Vaughan5 March 1982
Minister for TradeCecil Parkinson7 May 1979
Minister for TradePeter Rees14 September 1981
Under-Secretary of State for TradeNorman Tebbit5 May 1979 – 5 January 1981
Under-Secretary of State for TradeReginald Eyre7 May 1979 – 5 March 1982
Under-Secretary of State for TradeThe Lord Trefgarne5 January 1981 – 15 September 1981
Under-Secretary of State for TradeIain Sproat15 September 1981 – 12 June 1983
Minister of TransportNorman Fowler11 May 1979 – 5 January 1981became Secretary of State for Transport
Secretary of State for TransportNorman Fowler5 January 1981
Secretary of State for TransportDavid Howell14 September 1981
Parliamentary Secretary for TransportKenneth Clarke7 May 1979 – 5 January 1981became Under-Secretary of State for Transport
Under-Secretary of State for TransportKenneth Clarke5 January 1981 – 5 March 1982
Under-Secretary of State for TransportLynda Chalker5 March 1982 – June 1983
Under-Secretary of State for TransportReginald Eyre5 March 1982 – 11 June 1983
Secretary of State for WalesNicholas Edwards5 May 1979
Minister of State for WalesJohn Stradling Thomas17 February 1983 – June 1983
Under-Secretary of State for WalesMichael Roberts7 May 1979 – 6 January 1983
Under-Secretary of State for WalesWyn Roberts7 May 1979 – June 1983
Attorney GeneralMichael Havers5 May 1979
Solicitor GeneralSir Ian Percival5 May 1979
Lord AdvocateThe Lord Mackay of Clashfern5 May 1979
Solicitor General for ScotlandNicholas Fairbairn7 May 1979
Solicitor General for ScotlandPeter Fraser28 January 1982
Treasurer of the HouseholdJohn Stradling Thomas6 May 1979
Treasurer of the HouseholdHon. Anthony Berry17 February 1983
Comptroller of the HouseholdSpencer Le Marchant7 May 1979
Comptroller of the HouseholdHon. Anthony Berry30 September 1981
Comptroller of the HouseholdCarol Mather17 February 1983
Vice-Chamberlain of the HouseholdHon. Anthony Berry7 May 1979
Vice-Chamberlain of the HouseholdCarol Mather30 September 1981
Vice-Chamberlain of the HouseholdHon. Robert Boscawen17 February 1983
Captain of the Gentlemen-at-ArmsThe Lord Denham6 May 1979
Captain of the Yeomen of the GuardThe Lord Sandys6 May 1979
Captain of the Yeomen of the GuardThe Earl of Swinton20 October 1982
Lords-in-WaitingThe Viscount Long9 May 1979 – June 1983
Lords-in-WaitingThe Lord Mowbray and Stourton9 May 1979 – 22 September 1980
Lords-in-WaitingThe Lord Lyell9 May 1979 – June 1983
Lords-in-WaitingThe Lord Cullen of Ashbourne9 May 1979 – 27 May 1982
Lords-in-WaitingThe Lord Trefgarne9 May 1979 – 5 January 1981
Lords-in-WaitingThe Earl of Avon22 September 1980 – 6 January 1983
Lords-in-WaitingThe Lord Skelmersdale9 January 1981 – June 1983
Lords-in-WaitingThe Lord Glenarthur27 May 1982 – 10 June 1983
Lords-in-WaitingThe Lord Lucas of Chilworth6 January 1983 – June 1983