...The short gap in time between the 1979 and 1980 campaigns did not leave much time for Labour to consolidate their gains and set themselves up as a party ready to govern. Whitelaw and the Conservatives, almost immediately after negotiations with the Democrats and Ulster Unionsts fell through in 1979, began making the case that "a stable government is needed", setting themselves up as the party that was best to deliver a majority and stability to Britain. The Conservatives made the case that Labour was too extreme to win a majority, citing the overabundance of ex-Labourites running under the Democratic label compared to ex-Conservatives. Labour, who had been out of government for nearly five years by this point and who had not found a strong case to bring to the public, saw most of their 1979 gains erased.
With a second majority, Whitelaw set about truly governing Britain again. The slow campaign of easing the stranglehold of trade unions over domestic industry and reducing budget deficits were the government's top priorities and the latter was making remarkable progress until President Bush of the United States convinced Whitelaw to contribute British forces to UNSFFI in 1981. While British troops were few on the ground in Iran (especially compared to their American counterparts), the deployment had the double effect of reversing much of the progress made towards getting Britain's fiscal house in order and gave other nations the perceptions that, between Iran and Northern Ireland, Britain had its military's hands full.
This was what persuaded the Argentinian military junta that Britain would not react if it acted on the country's long claim to the Falkland Islands (what they called the Islas Malvinas) and an invasion took place in late 1982, largely as part of a nationalistic distraction by the junta from Argentina's poor economy. The islands quickly fell and the junta's hoped for reaction did not occur. Whitelaw immediately organized a task force to retake the islands, all the while seeking aid from Bush and the neighboring state of Chile, whose government was increasingly annoyed at its non-democratic neighbors (including Argentina) of sending operatives in to Chile to kill their escaped political dissidents who had taken refuge in South America's sole long-term democracy.
Bush did not promise American support but told the prime minister the United States would not oppose retaking the islands and offered the United States as a mediator if Argentina would come to the table. Chile provided substantial covert aid to the British until the task force neared the island. Then, it launched a surprise attack, claiming as justification the Argentine junta's occupation of dispute territory in Tierra de Fuego and "numerous provocative attacks on Chilean soil" by Argentine operatives. The junta, which had not expected to deal with two attacks at once, quickly pulled a large part of its garrison from the Falklands to defend the Chilean border. The British task force arrived mid-pullout and the ensuing battle ended with only one ship escaping back to Argentina, with the rest of the occupying force either becoming casualties or being taken prisoner.
The junta attempted to begin mediation with Britain but the Chilean attacks and quick loss of the Falklands, combined with the dismal economic picture in Argentina that existed both during and prior to the Falklands conflict led to the junta falling from power and a democratic regime taking over. The new regime quickly imprisoned the former junta leaders and negotiated a peace treaty via the United States with Chile and Britain, ending the war.
Despite victory in the war seeing the Conservative shoot up in the polls Whitelaw did not call an election in 1983, believing that a new election campaign would possibly derail ongoing negotiations with the new Argentine government over a permanent solution regarding Argentina's claim on the Falklands and planned legislation to reform several local authorities, who were controlled by Labour and who had largely resisted the Conservatives' reforms over local funding.
When Whitelaw did call for new elections in 1984, he was able to point to the Falklands and the improving economy to offset fatigue with the Conservatives. Labour was not so lucky and the control by its vocal left-wing and the poor choice by its leader Michael Foot to include all resolutions arrived at in its party conference in the election manifesto (which included withdrawal from the European Economic Community, abolition of the House of Lords, unilateral nuclear disarmament, re-nationalization of recently privatized industries and a massive government drive for full employment) and saw a large swing from more centrist Labour voters to the Democrats. The division on the left and center-left saw Whitelaw's Conservatives win a strong majority.
Following his fourth general election victory (and third majority government), Whitelaw privately made it clear he would not take his party into another election, feeling drained after leading the country for nine years in 1984. He decided to stay on until late 1985 when he announced his retirement upon the election of his successor. Whitelaw's term as lame-duck leader was marred by an attempt on his life by the Provisional IRA that only narrowly missed blowing him up at a Conservative retreat in Brighton in an attack that killed 12 people and wounded two dozen more.
The Conservatives elected Michael Heseltine to succeed Whitelaw and Heseltine became prime minister in early 1986. Whitelaw continued to follow Whitelaw's vision for the first year or so after becoming prime minister, but started to move away from Whitelaw's path in 1987. Notably eschewing continuing the trend of battling with the Labour local authorities, Heseltine instead focused his energy on attempting to get areas left behind by the end of coal mining in Wales, northern England and Scotland back on their feet with reinvestment campaigns and retraining programs that Whitelaw had only given relative pittances.
While reviving the Conservatives' moribund popularity in these areas, these programs caused dissension in the party, which allowed Labour and the Democrats to easily make the case that the Conservatives were divided and losing effective control of the government. This was partially true and Heseltine further enraged some of his supporters by making moves towards local devolution of some powers in an attempt to cut off the rise of nationalist parties in Wales and Scotland and his government's relaxation of some aspects of martial law in Northern Ireland as a gesture of good faith in negotiations with the Provisional IRA was attacked as coddling terrorists in some Conservative circles.
With the Conservatives in power continuously since 1975, Heseltine worked constantly to boost the party's numbers up and refused to call an election until parliament was about to end in 1989. Foot had left as Labour leader following the horrible 1984 performance and his replacement, Neil Kinnock, had made it his mission to remove the hard left from positions of power in the party. Kinnock's theme of "a time for change" was blunted by the fact that Heseltine himself had only been in power for less than three years when the election was due and due to the Democratic Party's new leader. David Penhaligon had taken over mid-parliament from David Steel and had quickly become a strong contender for most popular politician in parliament. Penhaligon's strategies and insights into politics revitalized a party that had been deflated from winning so few seats after coming only 6 percentage points behind Labour in 1984.
The Conservatives lost their majority, but owing to Ulster Unionist support, retained effective control over parliament. While Labour gained more seats, the Democrats were the clear winner of the election, drawing even closer to the other two parties and doubling its amount of MPs.
Heseltine governed with the supply and confidence agreement with the Ulster Unionists through 1989 but knew that he would have to face an early election if he had any hope to continue in 10 Downing Street. Following by-election losses and defections to the Democratic bench, the Conservatives lost their ability to command a majority via supply and confidence and, unwilling to risk continuing on a minority, Heseltine reluctantly called for elections to take place in early 1991...