18 - The Labour Governments Of Wilson And Callaghan, 1974-79 Flashcards
What crisis which faced Heath had worsened under Labour? What particular issue ran rampant?
Economic crisis
Inflation
How much did commodity prices increase between 1971-74?
160%
What did the end of fixed exchange rates in 1972 allow for money to do in the free market? What fell in value?
Find its own value
Sterling
What became more difficult to control as a result of ending fixed exchange rates in 1972? What became more expensive?
Inflation
Imports
Who did Britain have to phase out tariffs with after joining the EEC? What policy was introduced as food prices rose?
Commonwealth countries
Common Agriculture Policy (CAP)
What was Labour’s principal policy to tackle inflation? What 1971 Act was repealed?
Social Contract
Industrial Relations Act
What did the Social Contract end free-market controls of? What 2 provisions was expanded?
Wages and prices
Welfare and nationalisation
What 2 things did Chancellor Healey’s first budget see increases in? What was cut to fund this?
Benefits and subsides
Defence
What deficit grew from 1974-79?
BoP deficit
What Board was set up in 1975? What did the Board invest in?
National Enterprise Board (NEB)
Businesses
What did the NEB invest heavily in during 1975? What was nationalised in 1976?
British Leyland
British Aerospace
How much did inflation increase to by 1975? How much did inflation decrease to by 1976 as a result of TUC pay rises?
24%
16.5%
What did the TUC increase to tackle inflation? What was the maximum amount pay was increased per week?
Pay rises
£6
How much was £1 in US$ in 1975? What was the US$ valued to Sterling by October 1976?
$2.75
$1.50
Who did the government have to apply to for a loan in November 1976? How much was obtained?
International Monetary Fund (IMF)
$3 billion
