1970-79 Flashcards
heath’s successes as leader
-already had experience as chief whip
-had a clear and detailed programme of modernisation, particularly related to economic modernisation and industrial relations
-came from a different social background to other tory leaders
-promoted ministers based on merit e.g. thatcher
-europhile committed to getting britain into the EEC, experience as chief negotiator under macmillan
heath’s failings as leader
-often percieved as stiff and prickly when dealing with people
-good at policies not politics
-not personally popular with the electorate or his party
-his conviction that he was right made him impatient to the necessity of persuading others
-economic and industrial problems
selsdon park proposals and the ‘selsdon man’
-tax reform
-improved law and order
-trade union reform
-immigration reform
-cuts to public spending
-end of public subsidy to ‘lame duck’ industries
-‘selsdon man’ respresented new conservative voter who wanted more control over his affairs, reduction in the role of the government saw an important break in the post war consensus
heaths aims with the economy and industrial relations
-tackle the economy, party by public expenditure cuts, but also by a ‘free market’ laissez-faire approach, not bailing out ‘lame duck’ industries
-reform industrial relations, and tackle union power by moving away from incomes policies such as wage freezes or pay settlements
industrial relations act 1971
-required strike ballots and a ‘cooling off’ period
-national industrial relations court set up to ensure the act was obeyed, had the power to impose fines on unions that did not obey the act
-TUC refused to accept it, 140,000 union members marched through central london chanting ‘kill the bill’
-unions found loopholes and never fully complied
-financial collapse of rolls royce saw heath u-turn on not bailing out ‘lame duck’ industries by bailing it out
1972 miners strike
-unions saught to undermine government’s attempts to control inflation by wage restraint
-strike led to power cuts and a state of emergency feb 1972
-conceeded to many of strikers demands so eventually miners went back to work
april 1972 budget
-delivered by barber designed to encourage growth
-known as the ‘barber boom’ it led to higher inflation and wage demands from public sector workers
-led anti-inflation in sept 1972 alongside a prices commission and pay board
-u-turn as prices and wages would be controlled by law not the market
upper clyde shipbuilders
-shipbuilding industry in difficulties in 1968 four yards merged to create upper clyde shipbuilders, which by 1971 was on the verge of collapse and appealed to the government to cover a deficit of £28 million
-cabinet agreed it did not deserve to be saved
-shop stewards were outspoken in demands of the government saving their jobs
-ultimately £35 million was provided to save 3 of the 4 yards, this lead to the heath government deciding the ‘lame duck’ policy had consequences that were too severe
‘pentonville five’
-5 stewards arrested for ignoring an injunction to stop picketing the site on the premises of midland cold storage company, all five put in pentonville prison
-a series of strikes began to follow until there was virtually an unofficial national strike
-the five were released within a week of their arrest
-the year witnessed the highest number of strike days lost since 1926
OPEC oil crisis
-arab-israeli war 1973 led to restrictions for the supply of oil, OPEC introduced a major increase in oil prices and britsh oil imports were cut by 15%, panic buying ensued
-rapidly deteriorating fuel situation led to a state of emergency being declared november 1973
1974 restrictions to conserve fuel
-50mph speed limit
-temperature control in offices
-three day working week
-television companies had to cease broadcasting at 10:30pm
changes to special relationship under heath
-arab-israeli war, US supported israel, britain viewed as doing the same even though they wanted to stay out of it
-detente saw easing tensions with USSR and US
-watergate scandal saw political instability with US
heath and china
-first major british politician to visit PRC, warmly welcomed as a statesman and brought back two pandas
-relations generally improved, as relations with the US and china improved
VAT (heath)
-1970, britain relied more on direct taxation than other european countries, conservatives aimed to shift to more indirect taxation
-VAT initiated in 1973, only essential goods exempt, tax was a requirement for britain to enter EEC
tax credit scheme (heath)
-promised to reduce the cost of tax adminstration and alleviate the ‘poverty trap’ created by means tested benefits
-the scheme would simplify income tax structure and turn main personal allowances into reversible tax credits
-can be seen as a u-turn on the selsdon park programme
local government act 1972
-significant problems with the pre existing system as many country boundaries were decided in the middle ages, no longer suitable
-set out provision of division of functions between districts and counties and suggested a minimum population of 40,000 for districts
decimilisation of currency (heath)
-having a simple currency based on 10s and 100s had been a long time coming
-decimal currency board set up to create and manage the transition
road to EEC membership
-jan 1963, de gaulle vetoes application as america would have an insight into europe
-nov 1967, de gaulle vetoes application again, due to devaluation and economic crisis
-but by 1972 the situation was different, decolonisation meant britain no longer relied on its commonwealth trading partners so heavily, georges pompidou replaced de gaulle and relations with the US had been somewhat strained by vietnam and suez
terms of entry into EEC
-britain would gain new trading partnerships
-could attract better foreign investors
-farmers could gain grants to expand
-workers secured the same rights as those in other EEC nations
BUT
-had to give up economic relationship with commonwealth
-britain had to make high contributions to the EEC budget
-had to agree to CAP
-common fisheries policy restricted right to fish in certain waters
-VAT had to be imposed
conservative opposition to EEC entry
-believed britain was surrendering sovereignty to europe
-powell was a critic and voted against the entry bill at every stage, refused to stand as candidate at 1974 election and encouraged his supporters to vote labour
labour opposition to EEC entry
-radical left were worried membership could affect the working class
-wilson tried to be neutral to unite party
european referendum 1975
-purpose to unite labour
-most of the press was in favour of remaining
-17million voted remain, 8 million voted leave
-personal triumph for wilson
-temporarily halted europe debate, reopened with major’s gov. in 90s
long term reasons as to why the tories lost the 1974 election
-the troubles accelerated
-heath was stubborn and socially awkward, not personally popular with his party or the electorate
-wilsons ongoing conflict with the unions left a legacy
