70-79 Economy

Question 1

Barber boom

Answer 1

-new chancellor barber introduced public spending cuts
-introduced tax cuts to encouraged investment
-barber boom began rapid inflation rise
-little economic growth, more unemployment, stagflation

Question 2

U-turn

Answer 2

-unemployment neared a million, heath took action
-rolls royce nationalised 1971
-government money to support upper clyde shipbuilders
-success by 1973, unemployment fell to 500k

Question 3

Oil price crisis

Answer 3

-1973 yom kippur war led to an opec oil embargo
-oil prices 4x normal levels
-nov 1973 national union of miners demand pay rise

Question 4

Industrial issues at the start of heaths reign

Answer 4

-dockers strike
-large pay settlement for dustmen
-postal workers strike
-go slow by power workers

Question 5

Industrial relations act

Answer 5

-abolished national board for prices
-set up industrial relations court
-cooling off period before strikes could begin

Question 6

Reaction to industrial relations act

Answer 6

-trade union congress and confederation of british industry opposed to it
-major strikes 1972 by miners, ambulance drivers, firefighter, civil servants, power workers, hospital staff
-23,909,000 days lost to strikes, most since 1926

Question 7

Industry act

Answer 7

-1972 aimed to involve government, tuc and cbi in agreeing wages prices investments and benefits
-criticised by right of the party

Question 8

Problems after the industry act

Answer 8

-disputes with firefighters and power workers
-oil crisis led to an higher wage demand from miners
-miners introduced overtime ban to strengthen demands
-miners refused a pay offer, jan 1974 national strike

Question 9

3 day week

Answer 9

-re-introduced from beginning of 1974
-used to conserve electricity after industrial action from engineers dockers firefighters etc

Question 10

Industrial relations under wilson

Answer 10

-in 1973 had negotiated social contract with the TUC
-agreement with NUM ended three day week
-Benn and Foot in charge of industry and employment
-Dennis Healey issued two budgets march and july

Question 11

Economic reforms 74-76

Answer 11

-jan 1975 healey’s speech in leeds said public spending control vital, apr 1975 budget tax rises and spend cuts
-NEB set up 1974 tony benn, administered governments shareholdings in companies, gave financial aid

Question 12

Economic Issues 74-76

Answer 12

-NEBs effectiveness questioned by 1975
-government nationalised british leyland
-1975 more formal pay restraint policy, intensified party divisions, left wingers wanted less pressure on unions

Question 13

Economic issues under callaghan

Answer 13

-1976 poor balance of payments put pressure on sterling
-sep 1976 wilson speech, said increased productivity needed to avoided unemployment and inflation
-government received £3 billion IMF loan dec 1976

Question 14

Economic successes under callaghan

Answer 14

-callaghan handled IMF crisis well
-north sea oil came on stream, 9 oilfields by 1978
-inflation fell to 10%
-unemployment at 1.6 million but falling, less strikes

Question 15

Industrial disputes pre Winter of discontent

Answer 15

-autumn 1978 TUC rejected 5% wage increase limit
-ford lorry drivers got 15% pay rise after 9 week strike

Question 16

The winter of discontent

Answer 16

-disruption to transport, public sector strikes
-not a serious challenge to the government
-disputes ended march 1979, average payrise of 10%
-hugely affected public mood