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3. B The end of post war consensus > 2. Wilson & Callaghan: Politics and economic issues > Flashcards

2. Wilson & Callaghan: Politics and economic issues Flashcards

1
Q

‘74 election - Ted heath failure?

Economy

A
  • High inflation 6-20% by end of his term
  • High umem, 1 mil in ‘72 + ‘73
  • U-Turn
  • Increases in public spending w/out raising taxes = budget deficit.
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2
Q

‘74 election - Ted heath failure?

EEC

A

Sucsessful application jan 1973

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3
Q

‘74 election - Ted heath failure?

Industrial relations - policy

A
  • aimed to reduce tyrade union power
  • limited TU role in workpace.
  • Tighter controls on collective bargining.
  • legal resitrictions on stricking abilty
  • ‘71 industrial relations act = controversial
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4
Q

‘74 election - Ted heath failure?

Industrial relations - 1972 miners strike

A
  • lasted serveal weeks, over pay + conditions.
  • distruption and power shortages.
  • 3 day week, jan ‘74 = distruption to econ, lifted march, unpopular, falure, reduced electriity demand
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5
Q

‘74 election - Ted heath failure?

Acts

A
  • Immigration act 1971 = controlled, quotas and permits, aided impact.
  • Clean air act
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6
Q

‘74 election - Ted heath failure?

NI

A
  • Bloodu sunday = worsened tensions, 13 killed by british army
  • IRA support grew
  • failed sunningdale agreement.
  • violence
  • unrest
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7
Q

‘74 election

Why did Heath feel save enough to call it call it?

A
  • Intended central issue of elction = “who governs britain?”
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8
Q

‘74 election

feb - No. of seats

A

Labour = 301
Conservative = 297
= hung parliment

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9
Q

‘74 election

feb - % of votes

A

Labour = 37.1%
Conservative = 37.9%

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10
Q

‘74 election

Wilsons less promising position back in gov

A
  • inflation 15%
  • deficit 3 billion
  • trade unions needed dealing w/
  • NI sitch = precarious
  • Labour less united
  • Minority government
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11
Q

When and why did Wilson feel confident enough to call for another election?

A

Oct 1974
Voters still accosiated Heath w/ 3 day week + miner conflict

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12
Q

Oct 1974 election result

A

Wilson won majority, only just 18 gained seats, Conservatives lost 21. Overall majority = 3

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13
Q

Social contract definition

A

voluntary pay restraint by TU and in return gov would reappeal Heath’s Industrial Act and pay board.

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14
Q

When was social contract negotiated?

A

1973, while in opposition by Wilson

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15
Q

Why did they do the social contract?

A

to act quickly + demonstrate that they were better equipt than Conservatives to work w/ TU.

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16
Q

Social contract concequences

A
  • TU sent clear message that gov didn’t want any confrontations.
  • agreement quickly reached = NUM allowing Wilson to end state of emergency + 3 day week.
  • Tony Benn + Michael Foot (left-wing) put in charge of departments of Industry and of Employment.
  • Dennis Healey chancellor issued 2 new budgest (march+july) to deal w/ econ crisis w/out annoying TU.
17
Q

National Enterprise Board, why was it set up?

A

1974 under Tony Benn
To administer gov share holdings in private companies
Could also give financial aid
AIM = to increase investment

18
Q

National Enterprise Board, weaknesses

A
  • By 1975 its effectiveness was being questioned.
  • Gov decision to nationalise British Leylnd (car manufacter) caused renewed cries about role of gov in rescuing ‘lame-duck’ industries.
19
Q

Social contract weaknesses

A
  • becoming apparent was not limiting wage demands.
  • caused more formal pay restrait policy to be intro. 1975. = intensified party divisions.
  • Michael Foot + Tony Benn = didn’t want to put pressure on unions, believe in more not less state interevntion on industry.
20
Q

When did Wilson resign?

A

March 1976

21
Q

James Callaghan general info

A
  • Attended public school (grammar)
  • Couldn’t afford entrance to Oxford
  • Worked for Inland Revenue
  • Fought in the Navy (WW2)
  • Friendly with Unions
  • Seen as a ‘safe pair of hands’
  • Wont divide the party - seen as ideal for it.
22
Q

Sept 1976 Callaghan speech about economic situation

A
  • warned ‘cosy world’ of full employment was gone.
  • Need for increase in producitivity to avoid ‘evil twins’ = inflation + unemployemnt.
  • argued previous govs of 20 years had failed to do so - both parties.
23
Q

IMF

A

= International Monetary Fund
* emergency loan.
* axious there may be a run on the pound.
* DEC = Healey recieved 3 billion loan, in return gov had to make big spending cuts.

24
Q

IMF loan - imrpovements to economy

A
  • Callaghan handled crisis well.
  • Economy recovered.
  • Improved when North Sea Oil came bout - 9 oil fields in production.
  • Inflation fell ‘76 = 17%. ‘79 = 13%.
  • Saved from run on the pound.
  • Unemployment 1.6mil (while still high, was in delcine).
  • No of days lost to industrial disputes fallen to 10 year low.
25
Q

IMF loan - criticism

A
  • Reinforced image of Britain in economic decline.
  • Conservatives dnounced it as ‘national humiliation’
  • Left of Labour = betrayal, caving in to international finanncers.
26
Q

Lib-Lab Pact

A

March 1977-Sept 1978
Liberal Party would work with the Government in the pursuit of economic recovery.

27
Q

Factors in 60s+70s for devolution

A
  • didn’t want to be patronised by British.
  • Decline of Britain
  • Scotland becoming more developed and independent.
28
Q

Devolution definition

A

The transfer of powers to a lower level of government

29
Q

Devolution story

A
  • By 1977 Labour’s majority had disappeared
  • Callaghan created the ‘Lib-Lab pact’
  • Able to defeat a vote of no confidence tabled by the Conservative Party
  • The deal meant that the 12 Liberal MP’s agreed to vote with the government in parliament.
  • In return, Callaghan promised Devolution for Wales and Scotland
  • Many in Labour were against it—unpopular
  • Devolution fails— loses support from the Liberals
30
Q

Devolution Acts for Scotland and Wales

A
  • 1978 passed.
  • opened ways for referendum - terms of such were set up to make it unlikely devolution would pass.
  • Oppesed Labour MP made clause - at least 40% of electorate had to apprve of it in order for it to pass.
31
Q

Devolution referendum date

A

1st march 1979

32
Q

Referendum turnout

A

Scotland:
* Yes = 51.6%
* No = 20.3%
Wales
* Yes = 48.4%
* No = 79.7%
==== sinces rules stated simple majoirty not enough, it was defeated.

33
Q

Devolution result concequnces for Scottish and
Labour

A

Dissapointed Scottish Nationalist MPs withdrew their support for Labour.

34
Q

WoD events

A
  • Autumn 1978 TUC rejected govs proposed wage increase limit of 5%.
  • Ford lorry achieved 15% after 9 week strike.
    = more unions followed their example.
    caused wave of industrial action
35
Q

WoD effects/strikes

A
  • this wave of industrial action distrupted transport (lorry and train driver strikes) = union ASLEF.
  • Shock and outrage in reaction to strikes by public sector workers e.g. hospital poters, clerical staff in councils, dustmen, graveiggers.
36
Q

WoD results

A
  • industrial unrest but not comparable to miners 1974.
  • disputes only ended march 79.
  • average pay increase achieved = 10% but psychological effect had devestating impact on public mood.

3. B The end of post war consensus (6 decks)

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