chapter 10

Question 1

what were the troubles of the new gov in 1974

Answer 1

-inflation at 15% & bop deficit at £3 billion
-trade unions need to be dealt with and NI is precarious
-labour is disunited

Question 2

why did wilson feel it was safe to call an election 1974

Answer 2

-voters still assosciated heath with the three-day-week and the miners conflict

Question 3

what were the results of the election 1974

Answer 3

-labour had 42 more seats but overall majority was only three

Question 4

what were measures taken regarding industrial relations 74-76

Answer 4

-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

Question 5

what was the first major economic problem

Answer 5

-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

Question 6

how was the first major economic problem dealt with

Answer 6

-April 1975 Healey’s budget imposes steep tax rises and public spending is cut