(!) 2:5 Wilson and the Labour governments - Content Flashcards
What year did Labour win the election, resulting in Harold Wilson becoming Prime Minister?
1964
How many seats did Labour win in the 1964 election?
317
How many seats did the Conservatives win in the 1964 election?
304
What did Labour focus on in their 1964 manifesto?
Abolishing prescription charge
Support for the CND, nuclear non-proliferation
More privatisation where appropriate
Expansion of the welfare state
End colonialism** and create legislature against racial discrimination to support Commonwealth immigrants
Overall a new Britain that more of a face of socialism, pushing for change
What did the Conservatives focus on in their 1964 manifesto?
> Very much a continuation of their strategies, especially their economic strategies
> More economic growth and stability, more trade
> Were okay with Commonwealth countries gaining independence but were eager to arrange trade with them
The 1964 election result can be described as more of a Conservative loss rather than a Labour victory. Why?
The amount of votes and seats won by Labour didn’t change much, but the Conservatives’ votes and seats decreased massively
How many votes did the Conservatives lose in comparison to the previous election?
2 million votes
Why might people not have voted for the Conservatives in 1964?
> Distrusted them after public scandals (e.g. Profumo affair)
Rejection from the EEC
Douglas-Home lacked charisma and was seen as an out-of-touch aristocrat
What was Harold Wilson’s personal image?
A great moderniser and very down to earth. Seen as classless - the first prime minister educated at state secondary school, unlike the Old Etonian style of Eden, Macmillan and Douglas-Home.
However, what evidence is there that Wilson wasn’t as popular as he appears?
He was heckled by the crowd at some of his speeches
What had Wilson promised in one of his most effective campaign speeches?
That Britain would catch up with ‘the white heat’ of technological change
How did Labour further consolidate its position in 1966?
It won another election victory that gave the party a sizeable majority
How many seats did Labour win in the 1966 election?
363
Who was the new leader of the Conservative party, replacing Douglas-Home?
Heath
Even though Heath came across as more modern looking, he was no match for Wilson. Why?
Wilson was a better political tactician and was able to portray a more attractive image to the voters. In contrast, Heath came across as stiff and lacking in personality.
What side of the Labour party did Wilson appear to be on?
Initially, he was on the Left, as a Bevanite, but later served in Gaitskell’s cabinet, on the Right. When he went up against Gaitskell for party leadership in 1961, this made him appear on the Left. However, his personal views supporting nuclear deterrent and reforming the trade unions made him appear on the Right.
What was one of the key priorities of the Labour government when they came into power?
Modernisation of the British economy; reorganising it to break out of the cycle of ‘stop-go’
By 1964, it was widely accepted that in terms of economy, Britain was lagging behind countries like…
West Germany and Japan
While the post-war boom had a great impact on living standards, it was not reflected in…
productivity and growth rates
Britain’s economy seemed to be trapped in a cycle of…
‘stop-go’ - where bursts of prosperity always led to inflation, runs on the pound and regular crises over the balance of payments
When they came into power, Labour inherited a deficit of…
about £800 million
What were the 2 classic economic solutions to this kind of problem?
Deflation or devaluation
Which 2 prominent Labour members did not want to follow through with either of these options?
Wilson and Callaghan
Who was James Callaghan?
Wilson’s Chancellor of the Exchequer
What were the advantages of deflation?
Deflation would support the value of the pound and prevent inflation
What were the disadvantages of deflation?
Deflation was the old ‘stop-go’ approach that Wilson was determined to break away from. It may also have prevented the Labour government from fulfilling its manifesto promises: spending extra on welfare and technology
What were the advantages of devaluation?
Devaluation would help to level out the balance of payments: it would make imports more expensive and help exporters by making British goods cheaper in other countries.
What were the disadvantages of devaluation?
Devaluation would force Britain to scale back its trading activities around the world, as well as making Britain appear weak. Also, the previous Labour government had devalued the pound under Attlee in 1949, so doing this again could give Labour the reputation of ‘the party of devaluation’.
Rather than deflation or devaluation, Wilson was convinced that Britain’s economic problem could be solved with…
careful management and planning
What did Wilson set up and when?
The new Department of Economic Affairs (DEA) in 1964
Who led the DEA?
George Brown
What did Brown do?
> He set growth targets
> He devised a national system of ‘economic planning councils’
> He tried to establish voluntary **agreements about wages and prices **with industrialists, trade union leaders and civil servants
What were the aims of Brown and the DEA?
To secure the economic restraint needed to prevent inflation rising. In this way, the ‘stop-go’ cycle of the 1950s could be avoided.
How did Brown and the DEA fail?
They were not united with the government and didn’t have government support. In fact, they were somewhat competing with Callaghan and the orthodox economists at the Treasury.
In 1966, Wilson moved Brown to…
the Ministry of Foreign Affairs
In what year was the DEA abandoned?
1967
What did the government try next?
A prices and incomes policy (set limits on wage rises and encourage wage restraint) to keep down inflation. This was implemented by a Prices and Incomes Board.
What caused another sterling crisis in 1966?
A long and bitter strike by the National Union of Seamen.
How did the government react to this strike?
They defeated the strike, forcing the strikers to return to work. However, **Wilson was extremely critical **towards them, which resulted in Frank Cousins resigning from the cabinet over the prices and incomes policy. This was the start of the break down of the relationship between the Labour government and the trade unions.
So overall, the government survived the two sterling crises of 1965 and 1966 without having to use…
deflation or devaluation
However, what caused disruption to the balance of payments in 1967?
> An outbreak of war in the Middle East affected oil supplies
> There was a major national dock strike in August 1967
Therefore, Labour was forced to…
devalue the pound
The pound dropped by…
14% to 2.40 US dollars
The government also implemented some deflationary policies:
> Defence cuts
> New hire purchase restrictions
> Higher interest rates
How did Wilson explain the devaluation of the pound to the British public in a television broadcast in November 1967?
“That does not mean, of course, that the pound here in Britain, in your pocket or purse or in your bank, has been devalued.”
“We shall now be able to sell more goods abroad on a competitive basis”
“The goods that we buy from abroad will be dearer, and so for many of these goods, it will be** cheaper to buy British”**
What humiliation did the Labour government face a few weeks after the devaluation?
Britain’s second application to join the EEC was rejected (1967)
Why did this rejection make the Labour government’s economic policies look useless?
The primary reason to join the EEC was for the economic benefits - most of the Labour party did not actually want to join and so Wilson was hesitant.
Who replaced Callaghan as Chancellor of the Exchequer?
Roy Jenkins
What deflationary methods did Jenkins implement?
> He raised taxes
He restricted government spending
He gave to priority to improving the balance of payments
Although these tough measures were unpopular with the public, what did Jenkins achieve?
He achieved a balance of payments surplus by 1969
But by 1969 to 1970, inflation was still running at…
12%
The improvement of the economic situation from 1969 was a key factor in…
making Labour confident of winning the 1970 general election
All governments, including Conservatives and Labour, saw it as essential to satisfy and maintain a positive relationship with…
the trade unions
In opinion polls of the early 1960s, what % of people had a favourable view of the trade unions?
nearly 60% of people
In 1964, Wilson made the trade unionist Frank Cousins…
minister of technology
When did industrial relations with the trade unions begin to deteriorate?
1966 and 1967
Strikes by the seamen and the dockers revealed what? (2 things)
> These strikes were causing economic problems for the government
> The old-style union bosses were losing their control
A lot of strikes started with…
‘wildcat’ strikes by local activists who would not take orders from the top
How did the Conservative party react to the trade union strikes?
Heath (Conservative leader) announced a policy called ‘Fair Deal at Work’.
- aimed to improve relations with a proper framework of law
How did the Labour government react to the trade union strikes?
Wilson and Barbara Castle, his new employment minister, began planning to use the law to limit unofficial strikes.
How did Wilson appease the unions?
With a ‘beer and sandwiches’ approach; he invited the union leaders to No. 10 for a convivial chat over refreshments. The unions would get a 3.5% pay rise each year.
What was the problem with continued pay rises?
They can lead to inflation, which would devalue the pound
The National Union of Seamen wanted…
a pay rise of 17%
Why did the government have to refuse this payrise?
If they granted it to the seamen, the other unions would then demand the same. This was simply too expensive.
What were Barbara Castle’s views on the trade union strikes?
She believed strongly in a powerful trade union movement but she also believed that it needed to act responsibly.
In 1969, Castle produced…
her white paper, ‘In Place of Strife’. She knew it would be controversial, suggesting that it could be ‘political suicide’
What did ‘In Place of Strife’ propose?
> It would strengthen the unions in dealing with employers
But:
> There had to be a 28-day ‘**cooling off’ period **before a strike could begin
> ** Strike ballots** could be imposed
> People who broke the rules could be prosecuted in an industrial relations court
Who supported Castle’s proposals?
Voters, and many Labour MPs such as Roy Jenkins (Chancellor)
Who hated Castle’s proposals?
The trade unions, and the Left of the Labour Party
What was the reaction from those who hated Castle’s proposals?
There was a storm of protests from powerful union leaders, such as Jack Jones. They were supported by Callaghan (Home Secretary) and at least 50 Labour MPs who were ready to rebel.
What was the result of the ongoing row over trade unions?
Wilson finally gave in and Castle’s proposals were defeated
Wilson wanted to emphasise technology and science in modernising Britain’s economy, but why were they hindered in doing so?
Britain had a lack of expertise in these areas
How was Frank Cousins as minister of technology?
He was incompetent in this position as he had little interest in technological development
Who replaced Cousins as minister of technology in 1966, doing a far better job?
Benn
However, why was Britain’s technological development still hindered?
Research and development was costly, meaning that Britain could not compete with the USA, which spent vast government sums on research and development.
Britain did pursue some projects though, including…
the supersonic plane Concorde which it developed in partnership with the French government
After the deaths of Bevan (leader of Left) and Gaitskell (leader of Right), how did Labour party divisions improve?
Wilson emerged as the conciliatory leader of the party. He focused on being the party of technological modernisation, which united the Left and Right and minimised other disputes such as Clause IV.
However, Wilson feared leadership challenge from his most powerful cabinet colleagues;
Brown, Callaghan or Jenkins
Why might Brown have been a threat to Wilson?
Brown was hugely resentful after **losing the leadership election **to Wilson
He was disappointed to not have been made Foreign Secretary in 1964
Wilson was rumoured to have undermined Brown’s reputation by keeping a record of embarrassing incidents he was involved in
Why might Jenkins have been a threat to Wilson?
Jenkins was a **Gaitskellite **(Wilson went up against Gaitskell for leadership)
Wilson didn’t really support Jenkins’ liberalising legislation as Home Secretary
During the sterling crisis, Jenkins tried to get the cabinet to support devaluation, which Wilson saw as a plot to replace himself and Brown with Callaghan and Jenkins
However, why is it unlikely that Jenkins and Callaghan would have been working together?
Callaghan didn’t approve of Jenkins’ pro-European stance or his liberalising legislation
Overall, it is possible that Wilson put too much of his energy and attention towards…
keeping the party united and maintaining his position as leader, when there was actually little threat to his position
Unionists supported…
Northern Ireland being united with Britain
Nationalists supported…
a united Ireland
The majority of the population in Ireland were…
Catholic
In Northern Ireland, what % of the population did Catholics make up?
45-49%, so a minority by only a few percent
The Belfast parliament at Stormont and the whole socio-economic system in Northern Ireland was dominated by…
Protestant unionists
By the mid-1960s, there was mounting evidence that….
> Catholics in NI were discriminated against in employment and housing
> Electoral boundaries were deliberately drawn to prevent Catholics from being elected - gerrymandering
While Irish Catholics were facing discrimination in Britain, it was even worse in…
Northern Ireland, with de jure discriminatory measures to hold Protestant dominance over Catholics
> They held close to no political power
> They were essentially second-class citizens
There were also accusations that the Royal Ulster Constabulary (RUC), the NI police force, was….
biased against Catholics
What marked the birth of the Irish civil rights movement in the 1960s?
In the early 1960s, the Campaign for Social Justice (CSJ) was founded
When was the Northern Irish Civil Rights Association established and why?
Established in 1967 to protest Catholic discrimination
What were the aims of NICRA?
> To defend basic freedoms for all
> Protect the rights of the individual
> Highlight abuses of power
How did the British government feel towards NICRA?
They were very hostile towards NICRA
What was the Derry March 1968?
> A protest against gerrymandering and discrimination against Catholics.
> It was violently broken up by the overwhelmingly-Protestant police.
> It was supported by NICRA
> It can be described as the start of ‘the Troubles’
What were the Londonderry Riots 1969?
> The Apprentice Boys (Protestant organisation) marched through an overwhelmingly-Catholic area of Derry
> It developed into an intense confrontation, with both sides throwing stones at each other and eventually petrol bombs
> The police were involved, but were unable to control the situation, so the army had to be sent in
Give some reasons as to why Labour won the 1966 election with a large majority.
> Wilson was an experienced campaigner
> They were more in tune with popular culture and society
> Had created dept of technology and strengthened science and education - 7 new universities by 1966
> Liberalisation laws under Jenkins
What was the exchange rate in 1964?
$2.80 to the pound
Why did Brown fail to manage the DEA effectively?
He was impulsive and lacked consistency
> Came up with National Plan - created in unison with trade unions and industry but did not have support of united government.
Perhaps Wilson’s biggest weaknesses in his management of the economy was…
that he devoted too much effort to keeping people happy
Overall, Wilson inherited a bad economic situation, but…
he was indecisive as to how to deal with it. Concerned with electoral wins as to what was best for the economy – dithered over devaluation
Trade unions had come to wield so much influence due to…
the post-war consensus, i.e. the importance of maintaining full employment
With In Place of Strife, the government could…
impose a settlement when unions were in dispute with each other in ‘demarcation disputes’
Who else protested against In Place of Strife?
the National Union of Mineworkers, Callaghan and Gormley
It was clear that the promise of socialism in 1964 failed:
They had been unrealistic from the off in terms of economic theory and now the reality was kicking in. Abandoning this theory meant that Labour successive leaders could not bring the party back together – too much of an ideological gap.
Wilson felt confident for 1970 due to…
Jenkins’ improvements in the economy and the calming of trade union tensions
What was Labour’s majority in 1966?
98 seats
Another attempt to restructure the economy was…
the National Plan, which was abandoned in 1967
Labour’s 1970 defeat was shocking because…
Labour had chosen the time to call the election (thought it was a ripe time)
Wilson a master campaigner compared to inexperienced Heath
However, this might not be surprising as…
> Heath had greater strengths than expected
> Labour’s position in 1970 was actually quite fragile
The Conservatives did well in…
opinion polls and local government elections
What may have helped the Conservatives’ manifesto?
They did not mention immigration
Wilson was able to unify the party by…
appealing to the Left, centre and Right
How did Wilson appeal to the Left of Labour?
> He resigned with Bevan over prescription charges in 1950
> He launched a leadership bid against Gaitskell in 1961
How did Wilson appeal to the Right of Labour?
> He served in Gaitskell’s shadow cabinet
> He was in favour of Britain developing nuclear weapons
So, while Wilson put too much effort into securing his position…
this did help keep the party unified
How did the trade unions prevent Labour’s prices and incomes policy from being successful?
Trade unions became more left-wing in this period
> They were more militant in resisting wage restraints
The DEA was also unpopular with…
civil servants
There were sterling crises in…
1965, 1966 and 1967
While Wilson largely kept the Labour Party unified…
there were tensions between senior Labour politicians
Wilson was suspicious of Jenkins because…
Jenkins was a previous supporter of Gaitskell
When was Roy Jenkins Home Secretary?
1964-67
When was Roy Jenkins Chancellor?
1967-70
What was Brown’s position 1964-70?
Deputy prime minister
When was Brown foreign secretary?
1966-68
Why did Jenkins disapprove of Callaghan?
Callaghan’s failure to devalue in 1966 and the blocking of trade union reform
Why did Callaghan disapprove of Jenkins?
Jenkins’ liberal legislation, Europhile stance and trade union reform
Republicans…
do not recognise the legitimacy of British institutions
Loyalists…
were loyal to British institutions
In 1968, there were several civil rights marches to protest against discrimination:
these marches were attacked, and Catholics complained that the RUC would not protect them
Some Protestant Unionists feared that…
the Irish Republican Army would start a new campaign of violence
> So, unionist paramilitary organisations were set up to combat this
What was the Battle of the Bogside?
a large three-day riot that took place from 12 to 14 August 1969 in Derry
> Thousands of Catholics in the Derry Citizens’ Defence Association, clashed with the Royal Ulster Constabulary and loyalists
In August 1969, the Labour government…
sent British troops to Northern Ireland to keep the peace
