Formation
The Conservative government was re-elected in June 1983 with a majority of 144 seats, with Labour in opposition having a mere 209 seats after its worst postwar electoral performance, seeing off a close challenge from the SDP-Liberal Alliance who came close to them on votes though not with seats.
With inflation firmly under control and union reforms contributing towards the lowest level of strikes since the early 1950s, the Tories were now faced with the challenge of reducing unemployment from a record high of 3,200,000.
March 1984 saw the beginning of a miners' strike which would last for 12 months and divide the country as Mrs Thatcher announced extensive pit closures which would ultimately cost thousands of miners their jobs as well, while the remaining pits were set to be privatised in the proposed sell-off of the National Coal Board. Privatisation of utilities and heavy industry was becoming a key symbol of Thatcherism, with the likes of British Telecom also transferring from public to private ownership.
Michael Foot had stepped down as Labour leader after the 1983 general election. The man elected by Labour with the task of getting them back into government was Neil Kinnock. He proved himself as a fierce rival to Thatcher, and more than once during the 1983-1987 parliament the opinion polls showed Labour in the lead.
The challenge from the SDP-Liberal Alliance was becoming weaker, despite their brief lead of the opinion polls during 1985.
However, economic growth following recession had been re-established by the beginning of this parliament and by 1987 the economy was well on the road to recovery. However, unemployment which had peaked at nearly 3,300,000 during 1984 was barely above 3,000,000 by the turn of 1987, and with the opinion polls all showing a Tory lead, it was anticipated that Thatcher would call the next general election earlier than the deadline of June 1988.
Read more about this topic: Conservative Government 1983-1987
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