2.5 Wilson and the Labour governments

Question 1

Harold Wilson

Answer 1

. Yorkshire, elected 1964
. Talked of “white heat” of technology, modern man
. Head of first Lab govt in 13 yrs
. Personal animosity between him and Heath

Question 2

Quotes about Wilson

Answer 2

. “No previous leader of the opposition, without the authority of being and ex-PM himself, had enjoyed such an ascendancy” - Clarke
. “Wilson…seemed young in an era that had become used to statesmen of pensionable age” - Clarke

Question 3

Wilson’s ideology

Answer 3

. He had been a Bevanite
. He served in Gaitskell’s cabinet, but challenged him for leadership from the Left in 1961
. He lost, but this made him the obvious Left candidate
. He supported Britain’s nuclear deterrent and attempted to reform trade unions

Question 4

Wilson’s modernisation

Answer 4

. He was seen as classless, far from the Old Etonian style of Eden, Macmillan and Douglas-Home
. First PM educated at state secondary school
. Smoked a pipe, spoke with Yorkshire accent
. Relaxed, skillful performer on TV

Question 5

Wilson in private

Answer 5

. He was insecure about his leadership
. He balanced potential rivals so he’d be unchallenged
. Relied heavily on a team of trusted advisors from outside govt and civil service
. Marcia Williams, his ‘personal political secretary’
. Many felt this ‘kitchen cabinet’ reinforced his suspicions of party rivalries and stopped ministers from having access to him

Question 6

The Economic Situation inherited from the Tories

Answer 6

. Debt of £8 billion
. Labour had been elected on the promise of improving the Welfare state: plan in jeopardy
. Chancellor Jim Callaghan needed to start with savage spending cuts
. £ under pressure: devalue or deflate

Question 7

Problems with Deflation

Answer 7

. It’d support the value of the £ and prevent inflation
. But this was the ‘stop go’ approach that Labour wanted to break away from
. Also feared it’d stop Labour from meeting its manifesto commitments of extra spending on welfare and technology

Question 8

Problems of Devaluation

Answer 8

. Make imports expensive and help exporters by making British goods cheaper in other countries, helping the balance of payments
. But it’d make Britain seem + feel weaker, as they’d have to scale back activity across the globe
. Wilson feared Labour would gain the rep as the party of devaluation, as it had already devalued the £ under Attlee in 1949

Question 9

The Department of Economic Affairs

Answer 9

. Led by George Brown, set up to solve problems
. Brown devised a national system of ‘economic planning councils’ and set growth targets’
. He tried to establish voluntary agreement about wages and prices with industrialists, trade union leaders and civil servants

Question 10

Aim of the DEA

Answer 10

. To secure the restraint needed to prevent inflation rising which the govt would then need to stop with controls
. In this way, the ‘stop-go’ cycle of the 1950s could be avoided

Question 11

Failures of the DEA

Answer 11

. Economic proposals weren’t supported by govt
. Brown was against Callaghan and orthodox economists at the Treasury
. Some blamed Brown: impulsive and inconsistent
. Others blamed old-fashioned and anti-Labour civil servants at the Treasury + Bank of England who they felt undermined Brown, refusing to pass over papers and tapping his phone

Question 12

End of the DEA

Answer 12

. Arguably, Harold Wilson tried to keep key personalities happy rather than pick the best team for the job
. 1966: Wilson moved Brown to the Ministry of Foreign Affairs
. 1967: The DEA was abandoned

Question 13

Prices and Incomes Board

Answer 13

. Implemented a prices and incomes policy to keep down inflation

Question 14

Sterling Crisis - 1966

Answer 14

. Caused by long strike by National Union of Seamen
. Govt defeated it but many were shocked by Wilson’s critical attitude to the strikers
. Aftermath, trade unionist Frank Cousins resigned from cabinet over incomes policy
. Relations between govt and unions were starting to break down

Question 15

Problems in the Middle East

Answer 15

. 6 day war between Israel and Egypt in 1967

. Affected oil supplies and a national dock strike in August 1967 affected the balance of payments

Question 16

Devaluation

Answer 16

. 18th November 1967
. £ devalued against $ by 15%
. Each £ = $2.40 instead of $2.80

Question 17

Consequences of Devaluation

Answer 17

. Callaghan resigned and was replaced by Roy Jenkins as Chancellor
. Unpopularity for govt shown in by-election: swings of up to 18%
. Reduced defense spending and withdrawal from East Suez
. Annoyed unions by blaming them for the crisis
. BUT the economy picked up!

Question 18

The Pound in your Pocket Speech

Answer 18

. Wilson exp: impossible to borrow to keep protecting £ bc of unacceptable conditions for borrowing:
. Economic situation inherited from the Tories + not enough time to turn the economy around
. War in the Middle East
. Docker’s strike
. Speculators (currency traders): ‘Gnomes of Zurich’

Question 19

Consequences of the Pound in your Pocket Speech

Answer 19

. “Doesn’t mean that the pound in your pocket… has been devalued” - bad and wrong thing to say
. Imports will be expensive so buy British
. Export drive - £500mil into exports, bank rate up 8%
. Higher Purchase on cars up, cuts in defense and spending + other areas of public spending
. Prices+incomes were controlled to avoid inflation
. Devaluation would lead to economic opportunities

Question 20

Andrew Marr quotes about Wilson

Answer 20

. “Wilson was also devalued, possibly by more than 14%”
. “Wilson’s words, reckoned ‘bonkers’ by some cabinet colleagues, drove a further wedge between him and the left” (on striking seamen)

Question 21

Barbara Castle

Answer 21

. Strong, adamant, committed to social justice
. Brilliant orator, commanding speaker, modernist
. Intro’d serps (national insurance contributions) to guarantee a 2nd pension to all employees
. Feminist, staunchly advanced cause of women
. “Most effective, charismatic female politician in Labour’s history.”

Question 22

Equal Pay Act 1970

Answer 22

. Intro’d in 1970 following the strike by women workers at Ford’s Dagenham plant
. “another historic advance in the struggle against discrimination in our society” - Castle

Question 23

How Laws Happen

Answer 23

1. Green paper (vote on by ministers - back bench MPs - private member bills)
2. White paper
3. Bill x 3 votes - House of Commons
   x 3 votes - House of Lords
4. Law

Question 24

‘In Place of Strife’

Answer 24

. 17th Jan 1969: white paper by Barbara Castle
. Rejected by unions and left of Labour Party
. Secret ballots before strikes became compulsory
. Cooling off period of 28 days could be imposed
. Fines available for breaches of law by union activists

Question 25

Unions throughout 1960s

Answer 25

. Union leaders worked to control their membership in partnership with the govt
. Virtually non-existent
. Full employment (so trade unions had more power)
. Action by shop stewards
. Strikes happened over smallest issues: 7mil days lost to strike, 1969

Question 26

Trades Dispute Act

Answer 26

. 1966
. Repealed the 1927 Trades Disputes Act which required workers to contract into their union rather than automatic membership

Question 27

Prices and Incomes Board

Answer 27

. Wage Freeze 1966. 1st attack on £
. Board set up to regulate pay settlements: took power away from unions - angered them
. Frank Cousins, leader of TGWU + minister for tech resigned in protest to wage freeze

Question 28

Donovan Commission

Answer 28

. Royal commission looking into unofficial strikes
. 1965 - 8 ‘Wildcat strikes’
. Suggested avoiding govt legislation + better local regulation w clearer written agreements, better procedures and structures
. Rejected by the government