Callaghans Permiership 1976-79 Flashcards
Why was Callaghan a good choice to replace Wilson?
-seen as ideal leader to maintain party unity
-‘a safe pair of hands’
-good links to TUs
Why was maintaining party unity easy for Callaghan?
-gov faced difficult problems over economy
-1976 poor BoP put pressure in sterling — concerns Br didn’t have enough reserves to support it
When did Callaghan give a speech + why did he warn?
-Sept 1976 to lab party conference
-warned ‘cosy world’ where gov could ensure full employment was gone
What did Callaghan say needed to change in his speech?
-productivity needed to improve to avoid ‘twin evils’ of unemployment + inflation
-criticised previous lab + cons gov as argued previous govt’s of last 20 yrs failed solve issues
What was the meaning behind the speech?
-to prepare lab party for gov planning apply loan from IMF as lab anxious about possible run on pound
What was the International Monetary Fund (IMF)?
-formed end of WW2
-promote econ stability + growth across world
How much was the loan that lab received from the IMF?
-dec 1976 chancellor Healey received £3billion
-in return gov made huge spending cuts
Why wasn’t the economic situation as dire as Labour had feared?
-Callaghan handled IMF crisis well + economy recovered
-but it reinforced image of Br in an economic decline
What were the reactions to Lab received a loan from the IMF?
-cons denounced it as national humiliation
-left wing lab saw it as a betrayal
-growth of leftist militancy in some public-sector unions + local councils
What re some key statistics from Callaghan’s premiership?
-% workforce unemployed increased — ‘76 = 5.3 increased to ‘77 = 5.7
-BoP increased — ‘76 = -1404 increased to ‘77 = +154 + ‘78 = +254
-days lost to strikes — ‘76 = 3.31million increased to ‘77 = 10.14 million
