1951-64 Flashcards
economic prosperity
-Churchill: full employment and rising salaries, salaries of ministers cut by 20% and food rationing ended 1954
-Macmillan: his premiership saw a vast improvement in ‘the condition of the people’
leadership
-appeared strong and united even in times of crisis (Suez-1956) compared to Labour’s infighting
-deferential politics worked in favour of the tories
-Lord Woolton’s reforms in 1951 made sure the party was unified
housing policy
-rebuild after WW2
-Rent Act 1957: abolished rent control putting 6 million properties on the market
-300,000 houses built annually
-created conditions for property owning democracy
-but
-60% of the homes built were private and rents rose considerably
unemployment policy
-committed to full employment
-but
-unemployment rose heavily, peak in 1963 of 878,000 and those living in working class cities found it hard to get full time employment
education policy
-tripartite system
-robbins report 1963: recommended more funding to universities and an emphasis on scientific education
1950s post war boom
-rationing ended 1954
-global economy booming
-by 1955 full employment
-huge expansions in electrical and engineering works
-rising wages as a result in economic growth and low unemployment
chancellors 51-64
-R.A. Butler (51-55): 55 election ‘give away’ budget, £134m tax cuts
-Macmillan (55-57): for Eden
-Thorneycroft (57-58): Thorneycroft and Macmillan disagreed over budget cuts leading to his resignation
-Heathcoat Amory (58-60): low unemployment, stable prices, favourable balance of payments
-Lloyd (60-62): dismissed by macmillan due to tax increases and public expenditure cuts
-Maudling (62-64): 1963 budget cut taxes by £260m
stop-go economics
-go: expanding economy with low interest rates and rising consumer spending
-stop: when the economy overheats, wage and imports exceed productivity and exports, government slows down the economy using spending cuts and higher interest rates
economic problems after 1961
-government introduced a pay pause to prevent wage inflation (unpopular)
-commonwealth trade insufficient
-macmillan applied to join EEC, rejection in 1963 was a serious setback
-1963 Beeching report: recommended massive cuts in British railways, 30% of lines closed led to public outrage especially in rural areas
NEDC
-National Economic Development Council
-consisted of government representatives, academics,employers and trade unionists, responsible for long term planning
NICKY
-National Incomes Commission
-role to keep an eye on wages and prices
successes of economic policy
-inflation and unemployment remained low, and living standards improved
-expansion in electrical and engineering work
-purchase tax reduced from 100% in 1951 to 25% in 1963
-on average wages grew by 72% whilst prices only increased by 45%
failures of economic policy
-1961 pay pause to hold back inflation was highly unpopular
-application for IMF loan in 1961
-1961 EEC application rejection in 1963
-balance of payments deficit of £750m by 1964
-instability of stop-go economics
1951 election figures
-Churchill
-Con 48%
-Lab 48.8%
1955 election figures
-Eden
-Con 49.7%
-Lab 46.4%
1959 election figures
-Macmillan(though he was PM from 1957, Eden resigned)
-Con 49.4%
-Lab 43.8%
1964 election figures
-Wilson
-Lab 44.1%
-Con 43.4%
evidence for post war consensus
-con and lab both pursued decolonisation
-con and lab committed to full employment
-con somewhat accepted atlee’s nationalisation programme
-con accepted that the unions had an important role to play
-con accepted the existence of the welfare state
evidence against post war consensus
-1953 con privatised iron and steel industries
-housing under con was private housing, lab mainly controlled by local authority
-disagreement over education, con wanted grammar schools maintained, lab wanted comprehensives
-labour’s defence policy in the early 1950s involved unilateral disarmament, opposed by con
reasons for labour remaining in opposition: internal divisions
-Bevanites vs Gaitskellites
-Bevanites: further nationalisations, anti nuclear weapons and defence spending, anti-EEC
-Gaitskellites: consolidation of Attlee’s reforms,pro nuclear weapons,move away from clause 4,pro-EEC
-entry into the Korean war (1950-53) angered the Labour left
-such a broadchurch of ideas effected the voting
-Bevan resigns on the introduction of prescription charges (1951)
reasons for labour remaining in opposition: image problems
-‘cloth cap’ image associated with manual working class
-party of rationing and austerity
-party divisions were obvious
-average age of cabinet was 60, compared to younger fresher conservatives
-Gaitskell was no match for Macmillan on TV
causes of affluence
-give away budgets of 1955 and 59 stimulated feelings of affluence via tax and interest rates cuts
-wages for working class men rose by 95%
-1956 34,100 immigrants came to live in Britain
-post war baby boom, created more teenagers