Differences between the political parties in terms of economic policy?

Differences between the political parties in terms of economic policy?

1. Prior to the reforms under Blair there was a distinct difference between Labour and the Conservatives.

   • Thatcher sought about restricting the power of trade unions with a number of pieces of legislation collectively known as the trade-union laws. HOWEVER Labour have had close ties with the Trade Unions - still to this day.
     • Prof. Roger Seiroff said Milliband's Trade Union reforms would put union bosses in an even more powerful position to influence Labour policy.
   • They also stood in opposition in terms of industry. The 1983 Labour manifesto was particularly left-wing, making them appear electable - it was dubbed 'the longest suicide note in history'. Whilst Thatcher and Major privatised a number of industry's including Rolls Royce in 1986 and British Rail in 1993.

2. The introduction of the National Minimum Wage Act of 1998 is a noteworthy example of government intervention in the economy under Blair; whilst Thatcher was in favour of a more laissez-faire, individualistic approach.

   • HOWEVER it is worth noting that Conservatives did support the Act - including future party leader and Prime Minister David Cameron.

3. The most notable change under Blair was his amendment of Clause IV in 1995 - which was part of the 1918 text of the Labour Party Constitution.

   • It accepted privatisation and was demonstrated by the Bank of England being made independence in 1997.
   • Peter Mandelson, Labour MP, said "We are all Thatcherites now"

4. As demonstrated by the 2015 General Elections both Labour and Conservative were determined to end the deficit.

   • The Tories wished to eliminate it completely whilst Labour wanted to balance the books by cutting the deficit every year.
   • HOWEVER the manifestos did also highlight differences - Labour in favour of introducing mansion tax on houses worth over £2 million whilst the Conservatives think it is "not sensible for a country to that wants... to reward saving and people who work hard and do the right thing".

5. In the 2015 general election, the 'niche' parties came to the fore front; with the left-wing SNP proving particularly successful winning 56 out of 59 seats.

   • SNP took a very Keynesian approach, promising a spending increase of 0.5% a year. It also had left-wing undertones - it wished to increase minimum wage to £8.70 by 2020 and pushed for the removal of Trident submarines.