3 The end of Post-War Consensus 1970-79 Flashcards
What gave Edward Heath an advantage as he came into power in 1970?
He had already been leader of the opposition for 5 years, longer than any post-war Tory, bar Churchill]
- gave him time to draft a clear set of policies on the modernisation of Britain/industrial relations
How was Edward Heaths education different to previous Tory leaders?
Educated at state schools
- made him different from the Old Etonians who had dominated the party previously
What did Heath lack, compared to his rival Wilson?
Wasn’t a strategic politician, ‘too honest for his own good’
- good at creating policies, but not dealing with politics
What were the 4 main economic policy goals proposed at the Tory Selsdon Park Conference, in the January before the 1970 election?
- Tax reforms
- reforms to trade unions
- cuts to public spending
- end of subsidies of ‘lame duck’ industries
These formed the basis for the 1970 election manifesto
What are ‘lame duck’ industries?
Ones that are unable to compete/survive without support from the State
What was decimilisation?
The change of the British currency to have 100 new pence, rather than 144 pennies, in £1
- Aligned with other European countries, for ease of trade
What was the ‘Barber Boom’
When Chancellor, Anthony Barber, introduced cuts in public spending and taxes, as per the manifesto
- initial motivation was to encourage private investment
- however, only caused ‘stagflation’ in the economy
What is ‘stagflation’
The situation where rapid inflation is paired with stagnant economic growth (and subsequent unemployment)
In what year did unemployment reach 1 million?
1972
What was the governments response as unemployment soared towards 1M?
They famously did a ‘U-turn’
- retreated from free-market economic principles announced in 1970
e.g Rolls-Royce was nationalised in 1971
What figure supported the idea that investment into modernising industry had been successful by 1973?
Unemployment fell to 500,000 from 1M the year prior
What triggered the oil crisis of 1973?
The Yom Kippur War in the Middle East
- caused OPEC to declare an ‘oil embargo’
- oil prices rose to 4x the usual level
What is OPEC
The Organisation of Petroleum Exporting Countries
- led by Saudi Arabia
- fixed levels of production to ensure prices didn’t fall
What 4 groups were industrial disputes already ongoing when Heath took over?
- Dockers - on strike
- Dustmen - pay settlement
- Postal workers - on strike
- Power workers - on a ‘go-slow’
What 1) Act was introduced and 2) board abolished, in response to problems with Industrial Relations?
- Industrial Relations Act
- National Board for Prices and Incomes
How effective was the Industrial Relations Act?
+ Set up and Industrial Relations Court for discussion
+ Created a ‘cooling off’ period before official strikes could begin
- Both the Trade Union Congress (TUC) and Confederation of British Industry (CBI)
How many days lost to strikes were there in 1972?
23,909,000 - the most since the General Strike of 1926
- Miners, Ambulance drivers, civil servants, power workers, hospital staff and engine drivers
Who was Arthur Scargill?
Leader of the Yorkshire miners in the successful strikes of 1972 and 1974
- Later succeeded Joe Gormley as President of the NUM
When was the Miners Strike of 1972?
Began on January 9th, in a very harsh winter
- Gov’t declared a State of Emergency in 1972 and closed schools
What committee was established to examine miners’ demands?
The Wilberforce Committee
- eventually able to negotiate generous wage settlement with NUM leader Gormley
Who criticised Heaths negotiation with the TUC and CBI, with the Industry Act 1972?
The right wing of the Party - Enoch Powell
Why was Heath opposed to further wage demands from the Miners after the 1973 Oil Crisis?
They were beyond the limits the gov’t wanted to impose to hold down inflation
What else did the Miners do to strengthen their wage demands in 1973
Introduced an overtime ban
Who was the skilled negotiator who failed to agree with the NUM in 1974, after being transferred from the Northern Irish Office?
Willie Whitelaw - old style conservative centrist
- negotiated Sunningdale in 1973
- Miners refused to accept the pay offer