3:9 Heath's government - Content Flashcards
What were Heath’s aspirations for Britain when he became prime minister after winning the 1970 election?
He had a clear and detailed programme of policies for the modernisation of Britain.
What experience did Heath have?
He had been leader of the opposition for five years, longer than most Conservative leaders - meaning, he had a lot of experience
How was Heath’s social background different to that of other Conservative party leaders?
He attended a state school, unlike the Old Etonians who dominated the party
How was Heath as a politician?
> Perceived as stiff and prickly in dealing with people
His colleagues saw him as too honest; not skilful enough in pleasing political allies
Good as policies but not at politics
How prepared was Heath when he came into government in 1970?
Very well prepared
> Had spent his time in opposition developing detailed policies, especially on industrial relations and economic modernisation
> He was very knowledgeable on the issues surrounding the EEC - he was the chief negotiator from 1961-63
What posed a threat to Heath’s future as party leader after the problems of the 1970-74 period and election defeats of 1974?
Several Conservative backbench MPs were determined to force a leadership contest
Who was the key challenger to Heath for the position of party leader?
Margaret Thatcher
> Her policies were more to the right of Heath and Macmillan
> She supported the monetarist and free-market policies put forward by Enoch Powell and Keith Joseph
> She was able to exploit the sense that things were going badly wrong with both the party and with the country
What was the result of the 1975 Conservative party leader election?
Thatcher defeated Heath
> Following this, Heath lost much support from those who now supported Thatcherism
What did the Conservatives do in January 1970, ahead of the 1970 election?
They held a party conference at Selsdon Park to approve a policy programme which would form the basis of their manifesto at the election.
What policies did the Selsdon Park programme consist of?
> Reforms to trade unions
Immigration controls
Cuts to public spending
An end to public subsidy of ‘lame duck’ industries
What is a lame duck industry?
An industry that is unable to compete and survive without support from the State
However, the Selsdon Park programme was not intended to be a complete rejection of post-war consensus politics, since…
Heath still believed in ‘One Nation Toryism’ and the post-war consensus
Name 3 of the many reforms during the Heath premiership.
- The school leaving age was raised to 16
- Local government was reorganised
- The British currency went decimal, bringing it more in line with the currencies of other European countries
However, what were the 2 main focuses of the Heath administration?
The economy & industrial relations
Who was Heath’s chancellor?
Anthony Barber
Which 2 economic tactics did Barber implement, hoping to improve the economy?
- Cuts to public spending
- Tax cuts, in an attempt to encourage investment
What was the economic impact of Barber’s policies?
They caused the ‘Barber boom’, with a rapid rise in inflation. However, this inflation was not accompanied by economic growth; unemployment went up, which was a highly unusual thing to happen at the same time as inflation.
The complications of the ‘Barber Boom’ led to the creation of which word?
Stagflation: describes the unusual combination of inflation and stagnant economic growth (often producing unemployment) at the same time
Heath’s government had wanted to reduce state intervention in industry. However…
unemployment was starting to reach one million, so the government felt compelled to take action. This action would have had to go against their aspirations in their manifesto.
Which companies did the government invest in, going against their previous economic principles?
- The prestigious engineering firm Rolls Royce was nationalised in 1971
- Government money was poured in to prevent Upper Clyde Shipbuilders going bankrupt
This reversal of previous free-enterprise policy in 1971-72 can be described as…
Heath’s U-turn
What evidence was there that the government’s investment into modernising industry was improving the economy?
Unemployment had fallen back to 500,000 by 1973
However, which 2 detrimental events would cause the economy to suffer once again?
- The oil price crisis of 1973
- The energy crisis that followed
What was the initial trigger of the oil price crisis of 1973?
The Yom Kippur War in the Middle East. The war prompted OPEC to declare an oil embargo.