70s - Political, Economic and Industrial

Question 1

In 1964, what was inflation and the BOP at?

Answer 1

inflation at 15%
BOP at -£3billion.

Question 2

What did Labour rely on to pass legislation?

Answer 2

Other parties - particularly Liberals - as Labour was too divided.

Question 3

What was the Labour Majority in 1974?

Answer 3

Heath was still associated with the 3-day week so Labour won with a majority of 3.

Question 4

What was the 1973 Social Contract?

Answer 4

The TUs would take voluntary pay restraints in return for repeal of the Industrial Act. The TUs knew Wilson didn’t want confrontation so held the power.

Question 5

What did Wilson and Healey quickly do that sated the unions?

Answer 5

Wilson reached a NUM deal to end the 3 day week and Healey issues budgets aiming to deal with the economic crisis whilst keeping the unions onside.

Question 6

What did Healey give a speech on in Jan 1975?

Answer 6

He warned of the dangers of inflation.

Question 7

What did the April 1975 budget include?

Answer 7

Rises in taxation and public spending cuts.

Question 8

What was the National Economic Board set up for in 1974?

Answer 8

Headed by Tony Benn to oversee government shareholding in private companies. Its aim to increase investments was questioned and it was therefore ultimately ineffective.

Question 9

What caused a renewed controversy over rescuing lame-duck industries?

Answer 9

The nationalisation of British Leyland in 1975

Question 10

What failed to limit wage demands?

Answer 10

The Social Contract.

Question 11

What happened in March 1976?

Answer 11

Wilson resigned over economic issues and party divisions.

Question 12

What was the main factor pushing Callaghan into power in 1976?

Answer 12

He was a ‘safe pair of hands’ and could achieve party unity.

Question 13

What did Callaghan warn of in September 1976?

Answer 13

The cosy world of full employment was gone, and productivity had to increase to avoid the twin evils.

Question 14

What prompted the 1976 IMF loan of £3bn

Answer 14

There may be a run on the pound.

Question 15

What did the Conservatives think of the IMF loan?

Answer 15

It was a national humiliation.

Question 16

When did the North Sea Oilfields come into production?

Answer 16

1978.

Question 17

By 1978, where was inflation and unemployment?

Answer 17

Inflation 10%
Unemployment 1.6M but falling.

Question 18

How man days were lost to strikes in 1978?

Answer 18

A ten-year low.

Question 19

When was and what prompted the Lib-Lab Pact?

Answer 19

The Labour majority disappeared so Callaghan strengthened his government with 12 Lib MPs in order to defeat a VONC in return for devolution on Scotland and Wales.

Question 20

What was the significance of the 1978 Devolution Act

Answer 20

opened the way for domestic referendums - Scotland voted 51% in favour - not enough for a majority and Wales only 20% in favour

Question 21

What caused the Winter of Discontent?

Answer 21

In autumn of 1978 the Trade Union Council rejected the government proposal of a wage increase limit of 5%, and the TUC saw Ford lorry drivers get a 15% raise after a 9-week strike.

Question 22

Which companies went on strike and what was the outcome of the WOD?

Answer 22

ASLEF, public sectors, NUM and the local councils. There was an average pay increase of 10% for civil servants but the psychological effect of it damaged mood.

Question 23

Why did Labour resign in 1979?

Answer 23

Should have called a Gen Elec in 1978 but waited. Unskilled workers voted Conservative in the Gen Elec.
There was a VONC lost in March 1979 - Government forced to resign.
Labour characterised by WoD and Cons ran a slander campaign. Cons took Lib and SNP support - 43 seat majority.