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Summary Challenges Faced by John Major

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Summary of the Challenges faced by John Major between 1990-97

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  • December 18, 2023
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John Major’s Challenges
• Major's lack of authority and government experience: Despite being elected leader in
1990, Major was largely elected to block Michael Heseltine from winning the leadership
contest. His lack of government experience led to his uncharismatic personality being
ridiculed in the media.

• His victory in the 1992 general election: Despite his vigorous campaigning, the
Conservative majority was slashed to 21 seats, leading to further problems.

• The Maastrict Treaty: Major successfully negotiated British opt-outs from the Social
Chapter and the single European currency.

• The Maastricht Treaty: Major faced a fierce battle to secure the ratification of the
Treaty by the British parliament, with the Conservative rebels inflicting defeats twice.

• Major's weakened control: Major was weakened by public display of dissent from the
Eurosceptics, both in the parliamentary party and the cabinet.

• The Labour Party: Major held an election for the party leadership in 1995, but a third
of the party did not vote for him, highlighting the divisions within the Tories.



British Economy Crisis in 1992

• Inflation measures led to a depression in the British economy, causing unemployment,
business closures, and GDP decline.

• The government devalued the pound, but its value fell faster than expected.

• Conservative chancellor Norman Lamont attempted to maintain the pound's value by
increasing interest rates and obtaining the Bank of England to buy pounds.

• On "Black Wednesday," Britain withdrew from the Exchange Rate Mechanism (ERM),
tarnishing the Conservatives' reputation and boosting Eurosceptics' view of Europe's
potential.

Leadership Changes

• Neil Kinnock, Labour leader from 1983 to 1992, was blamed for over-confidence in the
1992 election and resigned.

• Tony Blair became leader in 1994, reconciling the Labour Party to Thatcher's reforms
and abolishing Clause IV of the Party’s 1918 constitution.

• Blair appealed to Conservative-supporting businessmen and City bankers and won the
support of leading figures in the media, including Rupert Murdoch.

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