2 The Sixties 1964-70

Question 1

What was the name given to the rapid technological change of the 1960s, which Wilson promised Britain would catch up to?

Answer 1

‘The White Heat’ of Technological change

• one of his most effective campaign speeches

Question 2

Why was Heath deemed ‘no match’ for Wilson in 1966?

Answer 2

1. Wislon was a better political tactician#
2. Protrayed a more attractive image to the voters (family man)

In contrast, Heath came across as stiff and lacking in personality

Question 3

Who did Wilson challenge, unsuccessfully, for Labour leadership in 1961?

Answer 3

Hugh Gaitskill - made him the obvious canditate in the future

Question 4

What 2 reasons did Wilson not seem to be of the Left (of the party)?

Answer 4

1. Supported Britain’s nuclear deterrent
2. Attempted to reform Trade Unions

He had previously been much further left, as he resigned with Bevan over Prescription Charges in 1951

Question 5

What failure did the ‘wasted years’ of Conservative governments refer to?

Answer 5

The failure of modernisation - which Wilson managed suceed in

Question 6

How did Wilson’s image reflect modernisation?

Answer 6

1. Far removed from Old Etonian style of Eden + Macmillan - not symbolic of any class
2. First PM educated at a state secondary school

Question 7

What suggested that Wilson was, in private, insecure about his leadership?

Answer 7

Relied heavily on a personal team of trusted advisers from OUTSIDE the government and civil service - known as the ‘kitchen cabinet’

• also included economic advisers and ‘inner circle’ MPs
• many felt this restricted ministers access to him and re-enforced suspicions of party rivalries

Question 8

What 2 countries was it accepted Britain were ‘lagging behind’ by 1964

Answer 8

West Germany and Japan

• modernisation of the economy needed to bring Britain up to speed

Question 9

What were some characteristics of the economy leading up to 1964?

Answer 9

Trapped in a cycle of ‘stop-go’

• bursts of prosperity always led to inflation, runs on the pound and BoP crises

Question 10

What deficit had Labour inherited in 1964?

Answer 10

£800M

Question 11

What 2 usual economic solutions to a large deficit, did Wilson and Callaghan (Chancellor) want to avoid in 1964>

Answer 11

Deflation or Devaluation

Question 12

What were the Pros and Cons of Deflation as a policy in 1964?

Answer 12

• Would support the value of the pound and prevent inflation

However:

• Aligned with the old ‘stop-go’ policies of previous gov’ts
• Feared it would threaten commitments of extra spending on welfare and technology

Question 13

What were the Pros and Cons of Devaluation as a policy in 1964?

Answer 13

• Make imports more expensive and help exporters by making British goods cheaper in other countries - aid BoP (£800M deficit)

However:

• Would make Britain weaker in scaling back activities across the globe
• Fears Labour would gain reputation for it after Atlee had in 1949

Question 14

Who led the Department of Economic Affairs? (DEA)

Answer 14

George Brown

• working class trade unionist background
• to the right of the party
• had a serious alcohol problem and was seen as unpredictable

Question 15

What were the aims of the DEA?

Answer 15

• set growth targets
• national system of economic planning councils
• voluntary agreements with TU leaders

Question 16

Why was the success of the DEA undermined?

Answer 16

In competition with Callaghan (Chancellor) and the Treasury

• they even tapped Brown’s phone
• abandoned in 1967

Question 17

What was Harold Wilson accused of (in terms of managing his cabinet?)

Answer 17

Keeping key personalities happy, rather than picking the best team for the job

• Brown moved to Ministry for foreign affairs - DEA dissolved

Question 18

What was the price and incomes policy?

Answer 18

Set limits on prices rises and called for wage restraints between unions and employers

• Managed by Price and Incomes board, to keep down inflation

Question 19

Which Trade Unionist resigned from the cabinet over the Incomes Policy in 1966?

Answer 19

Frank Cousins

Question 20

What strike in part caused the Sterling Crisis in 1966?

Answer 20

The National Union of Seamen

-Many on the Left shocked at Wilson’s critical attitude towards the strike

Question 21

What final crises caused the government to accept devaluation in 1967?

Answer 21

1. War in the Middle East affecting oil supplies
2. National dock strike affected BoP - trade limited

Question 22

By what % was the pound dropped by in devaluation in 1967?

Answer 22

14%

Question 23

What actions (as well as devaluation) were taken in Labour in 1967?

Answer 23

• Defence cuts
• Hire purchase restrictions
• raised interest rates

Little different to Tory ‘stop-go’ that preceded

Damaged Labours credibility

Question 24

What 2nd application was refused just weeks after devaluation?

Answer 24

Entry into the EEC

• made the governments economic policies look even more futile

Question 25

What were Wilsons views on joining the EEC in 1967?

Answer 25

Mainly on economic grounds

• much of the labour party did not want to join

Question 26

Who replaced Callaghan in 1969 as Chancellor, greatly improving the economic situation?

Answer 26

Roy Jenkins

• son of a Welsh miner
• Pro-European and Labour Right
• Founded Social Democratic Party in 1981

Question 27

What unpopular (yet successful) economic methods did Jenkins use to achieve a BoP surplus by 1969?

Answer 27

1. Raised taxes
2. Tightened government spending in all areas
3. Prioritises BoP

• This economic improvement made Labour confident of victory in 1970 general election

Question 28

What % of people said they had a favourable view of the Trade Unions in the early 1960s?

Answer 28

60%

Question 29

Which 2 strikes in 1966 and 1967 causes economic problems for the government?

Answer 29

Seamen and Dockers

Question 30

What type of strikes showed that ‘old-style’ union bosses were losing control?

Answer 30

‘Wildcat’ strikes

• sudden and unofficial strikes by local activists

Question 31

What was the name of the policy proposed by the Heath opposition to deal with strikes?

Answer 31

‘Fair Deal at Work’ Policy

Question 32

What similar legislation was passed by Barbara Castle (Employment minister) to limit unofficial strikes?

Answer 32

‘In Place of Strife’

• Castle herself suggested it could be ‘political suicide’

Question 33

What did ‘In Place of Strife’ propose?

Answer 33

1. 28 day ‘cooling off’ period before a strike
2. Strike Ballots could be imposed
3. Industrial relations court for rulebreakers
4. Gov’t could settle disputes between unions

Question 34

What was the reaction to ‘In Place of Strife’?

Answer 34

Voters and many Labour Right (such as Jenkins) supported

Protests from Labour Left + powerful union leaders - backed by Callaghan (Home Secretary) and 50 other MPs

• eventually won by TUC and government backed down

Question 35

Why were many of Labour’s domestic policies (such as modernisation) overshadowed?

Answer 35

Economic problems and a lack of expertise in the cabinet

• e.g the first minister for Technology, Frank Cousins, had no interest

Question 36

Research into what aviation project showed some commitment to technological modernisation by Britain?

Answer 36

Concorde

• could not compete with USA on R&D

Question 37

What fundamental goal of the Labour party united Left and Right?

Answer 37

Technological Modernisation

Question 38

What was one of the main sources of underlying tension between factions of Labour?

Answer 38

Clause IV - commitment to nationalisation