Western Europe
Western Europe Great Britain National Affairs A. HE DOMINANT POLITICAL EVENT of 1987 was the Conservative vic- tory in the general election in June. Margaret Thatcher entered an unprecedented third term as prime minister with a total of 375 seats, giving her a slightly reduced majority over the previous term. Labor won 229 seats, a small increase; and the Liberal-Social Democratic Alliance, 22, a slight drop. While the results clearly confirmed the success of the "Thatcher revolution" among the enlarged middle class, they also revealed the ongoing divisions in British society, geographic and economic. The Conservatives scored heavily in London, southern England, and the Midlands, while Labor was strong in economically depressed areas in Wales, Scot- land, and the north. In the election aftermath, the two parties constituting the Alliance, i.e., the Liberals and the Social Democrats, decided to go their separate ways, amid mutual recriminations, although an attempt was made by part of the Social Democrats to merge with the Liberals. On the Labor side, its third successive defeat gave impetus to a major reconsideration of traditional party policies. The Tory victory reflected satisfaction with a generally improved economy. In March the chancellor of the exchequer was able to reduce income taxes without imposing any further taxes on gasoline, tobacco, or liquor. Unemployment, which had reached 3.25 million in February, declined by the end of the year to 2.8 million, less than 10 percent of the working population. During the whole year there were fewer than 1,000 separate strikes—for only the second time since 1940.
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