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
Why did Heath impose the ‘three-day week’?
To conserve electricity in response to a wave of industrial action
- looming threat of a national coal strike in the middle of an energy crisis
What were 2 conditions/restrictions of the 3 day week?
- Fuel rationed (50mph speed limit)
- TV closed down at 10:30pm
What was the impact of the 3 day week?
- People got made redundant
- Longer shifts to make up for hours lost - neither productivity nor wages declined much
- BoP Crisis - shortage of coal
What was the name given to February 1974 Election, called by Heath?
‘Who governs Britain?’
What was the result of the ‘Who Governs?’ general election of 1974
A Hung Parliament - no political party had an overall majority in the House of Commons
- voters not enthusiastic about either main political party
- reinforced idea of political crisis
Which surprisingly successful Party did Heath try to make a coalition with?
The Liberals - led by Jeremy Thorpe
- They had won almost 20% of the popular vote, but only gained 14 seats due to FPTP electoral system
What is sectarian violence?
Violence relating to divisions in society - religion in Northern Ireland
What were the 4 main paramilitary groups that emerged on each side, from 1970 onwards?
REPUBLICAN - wanted a unified Ireland
1. IRA (split between official IRA and Provisional IRA in 1970)
2. INLA (formed from official IRA in 1974)
LOYALISTS - wanted to maintain loyal to British Establishment
1. UDA (Ulster Defence Association)
2. UVF (Ulster Volunteer Force)
What was the NI Political group that tended to support the conservatives since 1912, and who was their leader?
UUP (Ulster Unionist Party) led by Brian Faulkner
Why was the policy of internment (locking up without trial), introduced in 1971, ineffective?
95% of those interned were catholic - further alienated societies
Described by IRA commander Jim McVeigh as ‘one of the best recruiting tools the IRA had’
How did Bloody Sunday (30th January 1972) start?
Initially an organised protest against internment by NICRA (non-violence)
- British Soldiers responded by firing ammunition to control the march
How were the British Army viewed by Catholics and nationalist?
An enemy occupying power on FOREIGN land
How many were injured and died on Bloody Sunday?
26 unarmed civilians with 13 killed immediately
Who was the leader of the Provisional IRA in Derry at the time of Bloody Sunday, and what did he claim?
Martin McGuinness
- decision made by republicans for no ‘aggro’
What was the name of the original report that decided the British Army acted in ‘self-defence’ on Bloody Sunday?
The Widgery Report 1972
- Many nationalists saw this as a state ‘cover-up’
- Tony Blair’s Saville Enquiry, post Good Friday agreement 1998, later condemned the deaths as ‘unjustifiable’
How did Bloody Sunday grow support for the IRA?
- Witnesses of NICRA march queued up to join IRA, especially young people
- Raised funds in the USA
- Petrol Bomb burnt down British Embassy in Dublin
What were the stats for 1972, the bloodiest year of the Troubles?
- 1382 explosions
- 10,628 shooting incidents
- 480 people killed
What did Heath impose following the suspension of Stormont in March 1972?
Direct Rule - ruled from London rather than own Parliament
- Willie Whitelaw became secretary of state
What were the 3 main Unionist Parties?
- UUP - only major unionist party in NI until the Troubles
- DUP - fiercely opposed any form of power sharing or compromise, felt UUP was too moderate
- Alliance - moderate unionist party, aimed to gain support from both Catholics and Protestants
What were the 2 main Nationalist Parties?
- SDLP(Social Democratic Labour Party) - fought for Catholic Civil rights but rejected violence
- Sinn Fein - Republic Party dating back to 1905. Split in 1970 with the new Sinn Fein supporting the Provisional IRA
Who were Reverend Ian Paisley and John Hume?
Hume (Nationalist)
- Leader of SDLP from 1979
- Won Nobel Peace prize in 1998 for role in Good Friday agreement
- Brought together Sinn Fein + British Gov’t for talks
Paisley (Unionist)
- Leader of DUP
- led loyalist movement against Catholic Civil Rights in the 1960s
- refused power sharing or compromise throughout
What agreement did Heath and Whitelaw negotiate in 1973?
The Sunningdale Agreement
- complex power sharing agreement with support from SDLP, Alliance and leaders of UUP
What were the proposals made by the 1973 Sunningdale Agreement?
- power-sharing executive of both nations, both sides guaranteed representation
- New NI assembly elected under proportional representation system
- Council of Ireland that would have some input from ROI
What was the reaction to Sunningdale?
- Extremists (Republican + Unionists) called it a sell-out
- UUP later pulled out in Jan 1974, with Brian Faulkner replaced as leader
What mainland factors undermined the prospects of a true settlement after Sunningdale?
-The Miners’ Strike
- February 1974 General Election
What was the main Northern Irish reason why the conservatives would always struggle to stay in power after 1973?
Strong opposition to Sunningdale meant the Conservative Party could no longer rely upon the UUP
Why was Harold Wilson in a much less promising position during his second term in 1974, than he had been 10 years prior?
- Economic Situation
- Inflation at 15%
- BoP deficit of £3bn - Trade Union issues
- Labour divisions
- Minority gov’t - harder to pass legislation
When did Wilson call a new election?
October 1974 - looking to solidify his place as leader
-luckily, the voters still associated Heath and Tories with 3 day week and industrial dispute
What had Wilson negotiated, whilst in opposition, that showed his intention to better deal with the trade unions?
Social Contract with the Trades Union Congress (TUC)
- involved a voluntary pay restraint by the TU’s
- in return, gov’t would repeal Heath’s Industrial act and pay board
Agreement with which Trade Union allowed Wilson to end the State of Emergency and 3 day week?
National Union of Miners (NUM)
What changes to the Cabinet occurred in order to manage Industrial relations 1974-76?
Tony Benn (Secretary of State for Industry)
Michael Foot (Secretary of State for Employment)
Denis Healey (Chancellor)
- issued 2 budgets, deal with economic crisis without annoying unions
What did Healey’s April 1975 budget aim to do?
Reduce the surge in inflation due to necessary wage increases to escape industrial crisis
- steep rises in taxation
- public spending was cut
What board was established in 1974, by Tony Benn, to administer the gov’ts shareholdings in Private Companies?
National Enterprise Board (NEB)
- it could also give financial aid to firms (subsidies)
- aimed to increase investment into domestic firms
By 1975, just one year later, it’s effectiveness was being questioned
The decision to nationalise failing car manufacturer British Leyland caused renewed controversy over what?
The government rescuing failing ‘lame-duck’ industries
Why were Labour divisions intensified following the introduction of a Formal Pay restraint in 1975, after the failure of the Social Contract?
Left Wingers such as Benn and Foot did not want to increase pressure on the unions
- they believed in MORE state intervention in industry to help them prosper
In what year did Harold Wilson unexpectedly resign as leader of Labour?
March 1976
Why was James Callaghan seen as a ‘Safe Pair of Hands’ for maintaining Party Unity?
Seen as an Ally of the TU’s
- opposed Barbara Castles ‘In Place of Strife’ wage policy in 1969
Long experience
- Chancellor in Wilson’s first term
What were the concerns that growing BoP would lead to?
Increased pressure on the sterling - Britain did not have the reserves of currency to support it
What were the two terms, relating to Britain’s economic situation, which Callaghan spoke of at the 1976 Labour Conference?
No longer in a ‘Cosy World’ - could not ensure full employment
‘Twin evils’ of inflation + unemployment - productivity needed to increase
- He criticised gov’ts of the previous 20 years for never fully resolving the issues
Why did the government apply for an emergency loan from the IMF?
Concerns about a ‘run on the pound’
- December 1976, Healey (Chancellor) received £3bn loan
- IMF are pro free market, so gov’t force to make big spending cuts in order to secure
Despite economic recovery after the IMF crisis, what image of Britain was portrayed?
- On the world stage, a country economically in decline
- The Conservatives denounced it as a national humiliation
- The Left wing furious that Labour gave in to international financiers
How did the North Sea Oilfield help aid the economic situation by 1978?
9 oilfields in production by 1978
- Inflation fell to 10%
- Unemployment still high at 1.6M, but had started to fall
- Days lost to industrial disputes at a decade-long low
What is a vote of no confidence?
A vote on whether the government is considered able to continue governing; if it is lost then the PM must resign or alternatively call a general election
What pact, following Labour losing a majority in the House of Commons in 1977, was signed to defeat a ‘vote of no confidence’ by the Conservative Party?
The ‘Lib-Lab Pact’
- Meant that 12 Liberal MPs agreed to vote with the gov’t in Parliament
What did Callaghan promise in return for the ‘Lib-Lab Pact’, which kept Labour in gov’t?
To move ahead with Devolution for Wales and Scotland
Devolution - the transfer or powers to a lower level of government
What act was eventually passed, after lengthy debate, opening the way for referendums on Devolution?
1978 Devolution Acts for Scotland and Wales
- Took time to process as majority of Tory MPs and many within Labour were against Devolution
Why was it unlikely that Devolution would ever pass?
An opposed Labour MP inserted a clause that at least 40% of electorate (all those eligible to vote) had to approve
- The chances of such an occurrence (especially with many simply staying at home) were very slim
What were the results of the Devolution referendums (March 1979) in Scotland and Wales?
Wales voted conclusively against Devolution (79.7%)
In Scotland, more voted for devolution than against, but rules meant a simple majority was not sufficient
- Scottish Nationalist MPs withdrew support for the Labour Party
What government-proposed wage increase was rejected by the TUC in autumn 1978?
5%
- other unions followed with higher demands (e.g lorry drivers got 15% after a 9 week strike)
What were the most significant sectors on strike during the ‘Winter of Discontent’?
- Transport (Train Drivers, Lorry Drivers)
- Hospital Porters
- Dustmen
- Gravediggers
The psychological affect of a dysfunctional society ruined the public mood
However, this industrial unrest was not on such as scale as that of the Miners’ strike 1974
