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3. B The end of post war consensus > 1. Heath: economic and political issues > Flashcards

1. Heath: economic and political issues Flashcards

1
Q

1970 election

Result w/ seat numbers?

A

Conservative win
43 seat majority

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2
Q

1970 election

Why Labour may have expected to win?

A
  • The government had already passed it’s difficult times
  • Wilson was a master campaigner
  • Economy was recovering—balance of payments surplus
  • Heath’s unpopularity
  • Labour’s social reforms (open university/ Abortion etc.)
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3
Q

1970 election

Why Labour may have expected to lose:

A
  • Devaluation—the pounds value decreased, humiliating for Labour/ following Attlee’s government
  • “In Place of Strife— regulate trade unions
  • EEC rejection— humiliating for Britain’s prestige
  • The Troubles- N. Ireland riots / terrorism
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4
Q

1970 election

Why the Conservatives expected to win:

A
  • Heath was hard working,
    conscientious and had a image of competence
  • New ideas about the post war consensus
  • Heath’s stance against Enoch Powell’s anti- immigration speeches- shows he is moral
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5
Q

1970 election

Why labour lost/ weaknesses

A
  • Trade unions – series of wildcat strikes and in place of strife
  • Balance of payments, attempts to restructure the economy
  • Devaluation
  • EEC 1967 rejection
  • Disillusionment with Labour failure to deliver on promises of 1964 – Labour blown off course
  • Wilson magic worn off – indecisive leadership
  • Tension within party continued over trade union stance and ideology (Clause IV ghost)
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6
Q

Why conservatives won/strengths 1970 election

A
  • Heath had greater strengths than accounted for and was not Establishment
  • Refusal to include immigration in campaign
  • Conservative record 1951-1963 – positive party record
  • Decrease in Liberal share of the vote – voters return to Tories?
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7
Q

Heaths background, ideology and leadership:

A
  • Born to be a builder, studied at grammer school.
  • Remove gov interference, free-market thinking.
  • Quiet grumpy, rude, not as popular as other leaders.
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8
Q

Selsdom man

A
  • ‘Selsdon man’ became a symbolic anti- Keynesian, pro free- market individual.
  • More free market policies:
  • Tax cuts
  • reduce gov support for ‘lame duck’ industries
  • reform trade unions
  • reduce public spending
  • Plans formalised at Selsdon Park Conference Jan 1970
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9
Q

Harold Wilson quote about Selsdom man policies

A

“Selsdon Man is designing a system of society for the ruthless and
the pushing, the uncaring, you’re out on your own”

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10
Q

Anthony Barber

A

Chancellor of Exchequer 1970-74

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11
Q

Barber boom policies

A
  • Cuts in public spending and tax cuts - to encourage investment.
  • Scrapping of the prices and incomes board
  • Cuts in subsidies paid to local authorities
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12
Q

Barber boom criticisms

A
  • Abandoning the mixed economy
  • Weakening the welfare state
  • Undermining the principle of full
    employment
    Putting economic calculation before social improvement
  • Rents went up
  • Inflaton not accompanie by growth = unemployemnt rising = stagflation
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13
Q

Stagflation

A
  • Unemployment w/ high inflation + stagnent growth, went against Phillips curve.
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14
Q

U-turn

A
  • As stagflation increased inflation to 15% by the end of 1971 and industrial output decline, Heath lost confidence in his policies.
  • He announced that the government would return to controlling prices and supporting ‘Lame Duck’ industries.
  • Rolls Royce was nationalised in 1971 and shipbuilders on Upper Clyde were also support with £34 million from the government
  • 1973 = unemployment down to 500,000.
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15
Q

OPEC oil crisis

A

Oct 1973
* Yom Kipper War in Middle East.
* Prompted OPEC to decalre an oil embargo.
* Exports suddenly stopped.
* £ of oil rocketted 4x usual levels.
* Context for National Union of Miners to demand new pay rise in Nov 1973

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16
Q

What problems led to the Industrial relations act 1971

A
  • a dockers’ strike
  • large pay settlement for dustmen
  • postal workers strike
  • ‘go-slow’ by power workers which led to power cuts.
17
Q

Industrial relations act 1971

A
  • Similar to Barbra Castles In Place Of Strife.
  • Abolished Nation Board for Prices and Incomes.
  • Set up Industrial Relations court.
  • Provided for strike ballots + ‘cooling off’ period before official strikes could begin’
18
Q

Results of Industial relations act 1971

A
  • Trade Unions Congress (TUC) + Conference of British Industry (CBI) opposed it.
  • 1972 = major strikes by miners, ambulence drivers, firefighters, civil servants, hospital staff, power workers & engine drivers.
19
Q

National Union of Miners (NUM) strike, date, reasons and events

A
  • started 9th jan 1972 during harsh winter weather.
  • reasons: to gain wage increase and highlight number of pit closures.
  • Use of flying pickets, particularly by Yorkshire miners, led by Arthur Skargill stopped the movement of coal around the country.
20
Q

NUM strime outcomes

A
  • By 9th feb, gov declared a State of Emergency as schools were closed.
  • 1.2 million workers laid off.
  • Itset up the Wilberforce Committee to examine the miners demands and announced 3 day-week to save electricity.
  • Wilberforce Committe came down on miners side + NUM leader Joe Gormley was able to negotiate a generous wage settlement.
21
Q

3 day week

A
  • this to save electicity instead of giving in to the miners.
  • meant that: business and commercial premises could only open for three working days per week/ electricity blackouts left ordinary people without light and heating/ many people
    were left sitting in darkness with no opportunity to cook, listen to the radio, watch TV or
    even read a book
    o Heath hoped that this would reduce Britain’s need for fuel and allowed the government to
    survive longer than the strikers
    o He also passed the Industry Act in 1972, that tried to involve the government, the TUB and
    the CBI in agreeing wages, prices and benefits
22
Q

Industry act 1972

A

Aimed to involve the government, TUC and CBI in agreeing wages, prices, investment and benefits.
- was heavily criticied by some on the right of Conservative party e.g. Enoch Powell

23
Q

Number of strikes and workung days lost 1971-4

A
  • 1971 - 2,228 - 13,551,000
  • 1972 - 2,497 - 23,909,000
  • 1973 - 2,873 - 7,197,000
  • 1974 - 2,922 - 14,750,000
24
Q

Results of strikes and 3 day week

A
  • NUM gained 21% pay increase, nearly 3x orginal offer.
  • Emboldened - went to strike again ‘74 for more money.
25
Q

Rise of MT

A
  • Became MP for Finchley 1959.
  • gained first cabinet post 1970 - education secretary in Heaths gov.
  • 1975 - Challeneged Heath for party leadership, surpirse candidate.
26
Q

Feb 1974 election

A
  • Called a general election on the questions ‘Who runs the Country?’
  • Public judged Heath - rapid inflation, unemployment, declining productivity.
  • Loss 277 seats to 319 for Labour.

3. B The end of post war consensus (6 decks)

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