chapter 10 Flashcards
lab gov of callaghan and wilson
what were the troubles of the new gov in 1974
-inflation at 15% & bop deficit at £3 billion
-trade unions need to be dealt with and NI is precarious
-labour is disunited
why did wilson feel it was safe to call an election 1974
-voters still assosciated heath with the three-day-week and the miners conflict
what were the results of the election 1974
-labour had 42 more seats but overall majority was only three
what were measures taken regarding industrial relations 74-76
-while in opposition wilson had negotiated a social contract with the TUC (trade union congress)
-TUs sent clear message gov was not looking for confrontation
-agreement quickly reached with NUM allowing wilson to end three day week
-healy issues two budgets in march and july that aimed to deal w economic crisis w/out upsetting union
what was the first major economic problem
-surge in inflation due to rush of large wage increases
-Jan 1975 Healey gibes a stern warning speech in leeds warning that wage inflation causes unemployment and public spending must be controlled
how was the first major economic problem dealt with
-April 1975 Healey’s budget imposes steep tax rises and public spending is cut
what was the balance of payments of deficit in 1974
£3 billion
how many seats did labour gain in the 1974
18
how much was the overall majority for labour in 1974
3 seat
why did wilson feel safe to call a general election in 1974
heath was still associated with the three-day week and the miner strikes
what was the social contract with the TUC
voluntary pay restraint by trade unions and in return the gov would repeal Heath’s industrial act and pay board
when was the social contract made
1973
who was in charge of the departments of industry and employment
tony benn and michael foot
who was wilsons chancellor
denis healey
when did healey issue his budgets
march, july 1974
what was the NEB
national enterprise board
when was the NEB created
1974
what was the goal of the NEB
administer government share holdings in private companies
give financial aid
when did wilson resign as leader of labour party
1976
when was callaghan leader
1976-79
why was it thought the british currency was weak
balance of payments deficit put too much pressure on sterling
britain did not have enough reserves to support it
what did callaghan say was needed to end unemployment and inflation
productivity improve
a criticism of both previous labour and conservative gov
what was the IMF
international monetary fund
how did they plan to prevent the run on the pound
take out a loan from IMF of £3 billion
what was the result of taking out the loan
gov would need to make big spending cuts
what did the IMF loan do to britain’s image
reinforced the idea that britain was in economic decline
tory responded calling it a national humiliation
how many north sea oilfields were in production in 1978
9
in 1978 what was inflation & unemployment levels at
10%, 1.6million
