1964-1970 Flashcards
name 5 facts about harold wilson
-youngest prime minister of the century (early 40s)
-family was northern, lower-middle class
-beat gorge brown in leadership contest
-wanted to rid of privilege for drive for a progressive britain, ‘white heat of technology’ speech-63
-was known as a slippy character, not loyal to ministers, liked to cause irritation
when did gaitskell die
1963-previous labour leader (thought to be new PM)
why did labour win the 1964 election
-labour represented a younger, progressive image
-presented a large modern election campaign which presented him as fit to lead the nation, visited places
-labour revival, wilson by passed many of the old disagreements that held them back eg clause iv and nationalisation
why did conservatives lose the 1964 election
-unemployment reached over 800,000 in 1963
-scandals weakened their claim to integrity
-humiliating EEC failure exposed how weak britain were internationally
-main target of satire
-morale was low after 13 years in office
what were the results of the 1964 election
-labour votes seats-317
-conservative seats 304
-labour had majority of 4
what made progressive technological change hard for his government
-lack of expertise in gov
eg roy jenkins (aviation minister) was a non scientist so didn’t get his work and frank cousins (technology minister) had no interest in technology
-R&D very expensive
-economic problems they inherited
3 reasons why were they haunted by economic problems
-britain changing economic structure from industrial economy to a post industrial one (manufacturing industries changing to service/finance industries)-inflation
-lagged behind US and Japan
-spending too much on defence, too little on industry, balance of payments deficit $800 mil
who was george brown
-minister for economic affairs 64-66
(disliked by chancellor of e- callaghan)
what was the national plan and what was 3 of its aims
-the DEA under george brown (new department for economic affairs) formulated it for faster growth and modernisation as a pro-active control of the economy, to increase industrial production and exports by more co-operation with government, unions and employers
-wanted to increase GDP by 25% and have annual growth rate of 3.%
-welcomed prices and incomes policy and set up a royal commission on trade unions
-welcomed trades disputes act 1965 to restore legal safeguards threatened by rookies v barnard judgement 1964
when was the national plan and DEA abandoned and why
-treasury not happy with DEA trying to control economy
-met few of it’s objectives, 1967
-DEA=1969
what were the results of the 1966 election
-majority increases to 98
big majority!! electorate impressed with modernising approach, wilson thought it gave him a mandate- wilson called election because they had an unworkably small majority (4)!!
what was the problem with deflationary measures
-no different to old stop go policies
-labour would be unable to invest in welfare and technology
what 5 actions did wilson take to combat inflation and the b of p deficit and who did it anger (deflationary measures)
-cuts in gov spending
-wage freeze
-set up prices and incomes board to regulate pay settlements
-tax increase
-subcharge on imports of 15% over devaluation
how did labour stay economically steady until 1966 election
lord cromer (governor of bank of england) raised an aid package that got the gov through the worst- exports began to outweigh imports
what did the deflationary measures cause and how did wilson react
-trade unions angry!! leader of TGWU and minister of technology, frank cousins resigned
-series of strikes, weren’t happy with overtime rates, weekend work and wanted a 17% pay increase in 1966/67- most disruptive seamens and dockers
-1966 wilson said in the commons they were ‘marxist extremists’ and a ‘tightly knit group of politically motivated men’ who were endearing the countries security (anti-union sentiment)
why and when was devaluation necessary and what other 3 restrictions were introduced
-1967 sterling $2.80 to $2.40 cut of 14%
-industrial trouble (national dock strike)worsened trade deficit (exports fell), £40m loss of income so had to ask IMF for a loan having already borrowed £1 mil 3 years earlier=sterling crisis
-war in the middle east affects oil supplies and worsens b of p
-defence cuts, hire purchase restrictions, higher interest
why was devaluation humiliating 5 reasons
-couldve helped b of p from the start but they avoided with deflation it so they were reluctantly forced
-made their currency weak, loss of prestige, goods cheaper to other countries
-wilson had to deliver ‘pound in your pocket’ speech the following day to try and reassure britain that their money was still worth the same but no one believed it
-opposition (heath) pointed out in 37 months they’d denied they’d do it 20 times
-chancellor of the exchequer callaghan resigned over it
when and what was the greatest number of working days lost due to strikes (64-70)
1970-10,980,000 (after in place of strife)
when did wilson put the 2nd application to the EEC and why was it rejected
nov 1967
-de gaulle VETO again, britain too focused on atlantic alliance, lack of interest in the common market and their failing economy
-britain half hearted- left eg gaitskell,micheal foot, barbara castle and trade unions hostile because it was too capitalist VS europhiles eg jenkins and george brown wanted to join
1966 wilson thought it would be beneficial and a vote 488 to 62 to join happened so he applied
-SURPRISED- brown attended a NATO meeting in paris before they applied which seemed friendly with france
what does devaluation do
makes exports cheaper making your country more competitive globally but makes imports more expensive so domestic consumers won’t purchase them, helps combat trade imbalances
what was the b of p and inflation by 1970
£700 mil trade surplus (inflation sill high-12%)
who were wilsons chancellors of the exchequers
callaghan 64-67
roy jenkins 67-70
when and what was in place of strife and what did it include
-1969, a white paper which set proposals to limit trade union power and implement legal restrictions on the right to strike by barbara castle
-have to hold a ballot before a strike and have a clear majority before it could be legal
-had to have a 28 day cooling period before a strike
-industrial relations court could prosecute people who broke the rules and gov could impose settlements during disputes
who was barbara castle
employment minister
what 3 things caused in place of strife
wildcat strikes-unofficial strikes without reference to national leadership (eg seamen and dockers)
blamed eec rejection and bad economy on unions
publication of the donovan commission in june 1968 examined tu and was the cue of the need for reform
what were the consequences of in place of strife
-DIVISION- some cabinet was reluctant to support, political suicide eg callaghan (home secretary-eventually stopped it proceeding by stressing the dangers) and jack jones (union leader, leader of anti faction within the gov) voted against the paper vs some eg chancellor of exchequer roy jenkins initially supported
-june 1969 wilson gave humiliating climbdown after nov 1968 castle and wilson spent a weekend on failed negotiations and thought theyd loose the proposed ‘issue of confidence’ over it
-unions angry, undermined principles of labour who were meant to support unions- 6 mil days lost jan-july 1970= radicalisation of TU
-Denis healey (defence secretary) claimed it did ‘permanent damage’ to their relationship
in the early 1960s in opinion polls how popular were unions
60%