1970 - 1979 Flashcards
Summarize who Edward heath was?
Born in Broadstairs, Kent
Went to a Grammar school and Oxford
Involved in Conservative politics as a student, but was against their foreign policy, despised appeasement
Served in WWII in Royal artillery
became an MP in 1950
In charge of EEC negotiations in 1960
Became leader of opposition in 1965, beating out Maudling and Powell, making him the youngest ever Tory leader.
What were some criticisms of Heath before he came to power?
Complaints about him being insensitive, rude and grumpy were made
He was not good at making political allies
What was agreed shortly before the 1970 election at Selsdon park?
That the conservatives would adopt monetarist (reducing money supply) free market policies to solve unemployment and inflation, it marked the end of post war consensus politics, with heath abandoning income policies (instead letting market forces operate, allowing for free bargaining to occur between employees and employers).
Why was the 1971 industrial relations act passed?
If there was truly no pay freeze or interventions, the trade unions could not have too much power (to control inflation) it was Designed to cut strikes and curb escalating wage demands.
What was the 1971 Industrial relations act?
Passed by minister for labour Robert Carr:
- The act set up the National industrial relations court (NIRC) with the power to enforce ballots for strikes and a 6 month ‘cooling off’ period.
- Trade unions were now required to put themselves on a government register if they wanted to retain legal rights.
What were trade union responses to Industrial Reactions act 1971?
Trade unions were furious, 140,000 union members marched through London chanting ‘Kill the Bill’
The trade union Congress told their members to de register and defy the NIRC if they were brought against them
The unions exploited a loophole, allowing them to refuse to accept agreements so long as the employers admitted that such agreements were not legally binding.
What was the Barber boom?
In an effort to promtoe economic growth, prior to an application to the EEC, Anthony barber the chancellor:
- Reduced spending
- Reduced taxes
- And scrapped the incomes board
What effect did the barber boom have?
It briefly saw economic growth spike to 15%, but it saw inflation also rise and spiraling wage demands.
What was the government U turn on free market, no pay pauses policies?
in 1973 a statutory pay policy was reintroduced,
and Rolls Royce was nationalized alongside Clyde Bank shipbuilders over fears of Violence and outcry, despite them being a lame duck business.
What is a lame duck business?
One that cannot survive without the aid of the government.
What was the 1972 industry act?
Another Heath U turn, which aimed to involve the Govt, TUC and Confederation of British industry in agreeing wages, prices, investments and benefits, this was heavily criticized from the right by people like Enoch Powell.
Why were there 3 major strikes in 1972?
The miners, Firefighters and ambulance drivers all went on strike over pay, claiming their wages were not increasing in line with other industries
How large were the 1972 strikes?
They saw the highest number of strike days off work since 1923 at 24 million days.
Who led the miners strikes?
Arthur Scargill
What technique was used by Arthut scargill and the miners when striking?
Flying pickets are groups of striking workers that move from one workplace to another to picket them (stand outside and protest)
Why was the Miners strikes so devastating?
It stopped the flow of coal around the country
What did the government have to do in reaction to the miners strikes?
Heath was forced to call a government state of emergency
1.2 million workers had to be laid off
the Wilberforce committee was established.
What did the Wilberforce committee do?
Announced a three day work week 50 mph speed limit TV to close down at 10:30PM An hour of no electricity each day agreed a large and generous wage settlement with the NUM (national Union of miners) leader Joe gormly Similar to wartime Austerity
What events between the first miners strike and the general election encouraged Heath to call an election?
Further strikes and industrial disputes between firefighters and power workers
in Nov 1973 the Yom Kippur war in the OPEC countries further reduced power
also caused miners to ask for another pay rise
Heath reintroduced the 3 day work week in 1974
Heath Moved WIllie Whitelaw From NI to minister of employment but to no success
the NUM called another national strike in 1974 asking for more money.
Why did heath call the 1974 Election?
He could not control the constant strikes and needed more power to do so, so he presented the question ‘who runs the country, parliament or the miners’
What had inflation risen to in 1971 following the barber boom?
15% in 1971
What happened to Rolls Royce and Clyde bank despite promises not to?
The government nationalized rolls Royce and offered a large subsidy of £34 million to keep Clyde bank shipbuilders afloat.
What war further worsened the problems in Britain?
The arab-Israeli war (Yom Kippur war)
How did the Yom Kippur war affect Britain?
in 1973, Arab OPEC countries were against Israel, and any countries they thought were siding with Israel they reduced they exports to, and also steeply raised the price of oil.
What happened to the price of British Oil?
From 1973 -80, the price of an oil barrel rose from $2 - $35
Britain’s oil imports were cut by 15%
The cost of British oil imports were trebled
What pay increase did the miners receive to end the strikes?
Arthur Scargill agreed to a 21% pay rise 3 x what was originally asked for
Why was Britain more willing to join the EEC?
They were less reliant on the commonwealth by 1973, and the National farmers union saw the benefits of entry
Charles De Galle had now did and was replaced by Georges Pompidou who was very open for Britain to join.
France was also fearful of German independence and wanted Britain to join to counter balance this.
When was Britain accepted into the EEC?
Britain was accepted into the EEC on the 1st of January 1973 alongside Ireland and Denmark.
What were the two things under Heath which Heightened tensions in Northern Ireland?
Internment and Gerrymandering
What was internment?
A system of imprisonment without trial, historically used in enemy countries using wartime, it arrested people in NI who hadn’t yet committed a crime but were believed to be terrorists
Name an example of when internment was used?
In operation Demetrius in August 1971, British soldiers arrested 342 people believed to be IRA members or supporters, while no loyalists were arrested, this increased hostility and tensions towards the British military, and a number of protests followed.
What was Gerrymandering?
Deliberately planning an electoral system in order to exclude a given group and to keep another one in power. In NI, the provinces contained a large minority of roman Catholics, but the political institution had been designed to exclude them from representation.
What key event occurred during Heath’s Government in NI?
Bloody Sunday
In what ways was Heath partly responsible for bloody Sunday?
he backed the policy of internment and supported British troops in northern Ireland.
What was the NICRA?
The northern Ireland Civil Rights Association
What were the Events of Bloody Sunday?
The NICRA organised a march against internment in Derry (prohibited at the time) with numbers of about 10-15,000 people, Upon reaching a British Military barricade, a minority group broke away and became violent, resulting in the British troops firing on them, killing 13 people, It is believed they may have opened fire because IRA members were using bombs and guns to attack soldiers.
What event followed bloody sunday that further increased NI tensions?
A public enquiry was launched in may 1972 called the Widgery report that concluded that shots had been fired at the British Military before they had opened fire, this:
- Further heightened catholic resentment to the British
- Increased tension between Dublin and London
- Gave the IRA a huge propaganda boost, causing many to join the organisation
What was the Sunningdale agreement?
Parliament planned a deal with NI, an assembly would be elected by proportional representation, within it law and order would remain with Westminster, a consultee council (that would not make decisions) of Ireland would be invited, and Government and legislature would be handled by the NI gov, Despite a negative reaction from unionists who didn’t want Ireland to have a say in NI the power sharing agreement was agreed Between Heath, Liam cosgrove (NI PM) and three representatives of the three main Ulster parties
The agreement was signed at Sunningdale Park located in Sunningdale, Berkshire, on 9 December 1973.
Why did the Sunningdale agreement fall apart?
Unionist opposition, violence and general strike caused the collapse of the agreement in May 1974.
What were the main issues Wilson had Inherited?
Inflation was at 15% BoP deficit was at £3 billion Trade unions and miners strikes Three day work week Tense situation in Northern Ireland A disunited Labour party
What was Britain’s Economy like when Wilson took over?
BoP deficit at £3 billion
Inflation at 15%
Unemployment at 1.44 million
British industry was not producing enough goods to export at the right price, so foreign competitors secured a larger share of the market, Britain’s GDP was one of the Largest in Europe.
What did the Economic problems of the mid 1970s force the labour government to do?
In September 1976, The chancellor Dennis Healey began to negotiate a £3 billion loan from the IMF.
What were the terms of the IMF loan?
Britain would receive a £3 billion dollar loan, on the promise it made major cuts in public expenditure.
What were Labours reactions to the IMF loan?
The labour party were not united on the issue, with the labour left thought applying for the loan was conservative - they did not want to rely on international finances and meet their demands.
The centre right claimed that the government appeared weak and was at risk of losing its power to operate independently and was alienating its voters.
Far left Tony Benn claimed that giving into the demands deprived the supposedly socialist government the moral high ground and opened the way for Thatcher.
How did Dennis Healey meet the IMF’s Demands?
He cut public expenditure by £3 billion, with £2.5 billion in cuts on taxes on alcohol and tobacco.
What happened which led to a recovery of Finances?
The policies and cuts in expenditure brought in by Healey, accompanied with the discovery of North sea oil brought about an improvement financially, and Britain was soon able to pay off the IMF loan and had a surplus balance of payments.
Why was the Labour party not united over the EEC when it came to power in 1974?
The Labour left wingers like Tony Benn wanted Britain to withdraw from the EEC, Believing it was a capitalist club that would harm labour’s socialist nature While those on the right like Roy Jenkins and Shirley Williams wanted continued membership, when Benn suggested a referendum on the issue of Membership Wilson welcomed it and in his manifesto pledged that he would hold a referendum, if he was to get into power.
What did Wilson do with the EEC as soon as he got into power?
Wilson began negotiations with the EEC in regard to agriculture, Budget payments and commonwealth imports, no fromal agreements were made, but both sides knew it was mainly a gesture to show that Britain had a real say in what was happening in Europe.
What were MP’s to do during the 1975 EEC Referendum?
MP’s were told to choose whichever side they wanted to, creating a cross party divide.
What were the general patterns on who voted for what during the EEC referendum?
Mainly, labour wanted to leave, but the government backed remain, while conservatives and Liberals mostly wanted to stay
What happened just before the Referendum that may have changed the results of it?
A week before the referendum, the Government sent a leaflet to every household in the country, highlighting the positives of remain and encouraging them to vote remain.
What were the results of the 1975 referendum?
64.5% chose to remain
35.5% wanted to leave
Voter turnout was 2/3
In what ways was the referendum a failure by the labour party?
Many think it should have become before Britain’s entry, not after - seeing it as a ‘fait accompli’ (an irreversible position already established)
Critics also pointed out that the yes% of the vote had double the amount of money to lobby with compared to the ‘no group’
what level of benefits joining the EEC bring?
Very little, The rise in international oil price and the effects of inflation, negated the impacts of the EEC
The share of national imports from the EEC had doubled from 1958 - 1973, but Britain’s imports from the EEC did not increase after this so there was no real trade benefit
Many were also worried about the loss of National sovereignty, which the EEC openly agreed with.
Why did the Lib Lab pact occur?
by 1977, Labours majority had fallen to just 1, so Callaghan was forced to make an agreement with the Liberal leader David steel in order to keep the Callaghan government going.
What were the terms of the Lib Lab pact?
The liberals would vote alongside labour policies in return for a promise to carry out devolution (giving more power to Cardiff and Edinburgh) and the ability to see the proposed new bills before they were introduced. Steel was also angling a deal for proportional representation, but nothing came from this.
Why did Wilson resign in April 1976?
Despite rumours, he had been planning this for some time and had told the Queen of his intentions the previous December.
He was only 60 but the strains of leadership were beginning to tell on him and he did not want to lead the party into a 5th general election.
He thought it right that his successor should be allowed to establish himself before the next election.
Wilson’s critics claim that the humiliation of not being able to solve the country’s economic problems forced the decision but Ben Pimlott, his biographer sees no reason to believe this. ‘He was not ill, but he was ageing’…..
What was Callaghan like?
At 64 he was older than Wilson. From the right of the party he seemed to inspire confidence. He was particularly successful at dealing with the new Conservative leader Margaret Thatcher.
What were the four main ways Labour dealt with their economic issues?
- Received the IMF loan
- Steep rises in taxation alongside £3 billion cuts in public expenditure
- The National Enterprise board (NEB) was set up
- North sea oil was discovered
What was the National enterprise Board?
The NEB was set up under Tony Benn in 1974 to administer the governments share holdings in private companies, it could also give financial aid
How successful was the NEB?
Its aim was to increase investment but by 1975,its effectiveness was being questioned, The government’s decision to rescue the ‘lame duck’ company British Leyland caused controversy and following the Failure of the social contract, a more strict pay policy system was introduced.
