Britain: Labour and Conservative Governments 1964-79

Question 1

Economy: reducing balance of trade deficit? How much was it? Why was this important? What was solution?

Answer 1

inherit balance of trade deficit of $800mil, considered a key indicator of governments economic effectiveness and international holders lose confidence. Solution was for British goods to be cheaper than competitors. Helped by devaluation of pound in 1967.

Question 2

Economy: Reducing power of trade unions. Why were they so powerful?How did Labour attempt to reduce their power? To what extent was it successful?

Answer 2

Trade Unions traditional allies of Labour and funded a large amount of their income. “In Place of Strife” 1969 by Barbra Castle was a realistic attempt to reform industrial relations. Heavy backlash from 50mps on left of party, after 1969 T.U. still powerful.

Question 3

Economy: Avoiding Devaluation of the Currency. Why was important to avoid this? How did they avoid this? Was it successful?

Answer 3

Britains international prestige would be damaged and could cause run on the dollar. Control inflation and spending by deflation and higher taxation was used to avoid devaluation but was unsuccessful. Pound devalued in 1969.

Question 4

Economy: Controlling inflation. Why? How was it done? Was it successful?

Answer 4

Used to avoid devaluation. Used higher taxation to control spending and create devaluation, National Plan 1965 introduced with ambitious targets. Not successful as high taxes impact labours key voters, and devaluation not avoided in 1967.

Question 5

Why Labour won 1964 election: Attitudes to Conservatives. What were they? How important was this in Labour victory?

Answer 5

Conservatives seem out touch with society, elitist, blamed for economic decline. unemployment and involvement in sex scandals. Very important as disillusionment with Conservatives helped Labour win, still popular in 1964, Labour only win 4 seat majority.

Question 6

How Successful were the economic policies of the 1964-70 Labour Government?
Outline key factors and opinion.

Answer 6

• reducing balance of trade deficit
• reducing power of trade unions
• avoiding devaluation
• controlling inflation
  Overall unsuccesful