Chapter 10- labour governments of Wilson and Callaghan Flashcards
what economic state did Wilson inherit
15% inflation
balance of payments deficit of £3 billion
when did Wilson call a new election
October 1974
what were the results of the October 1974 election
labour- 39.2%. 319 seats
conservative 35.9%. 277 seats
what contract did Wilson negotiate while in opposition
the social contract
what did the social contract include
voluntary pay restraint by u unions in return the industrial relations act would be repealed
what did the social contract result in
an agreement reached with the NUM which ended the strike
what was set up in 1974 under Tony Benn
National enterprise board
what caused controversy in 1974
government nationalised the failing car manufacturer British Leyland
went against ignoring lame duck industries
what did Callaghan call the the ‘twins of evil’
unemployment and inflation
what did Callaghan do to avoid a run of the pound
applied for IMF loan
when did the IMF loan come through
december 1976
how much was the IMF loan
3 billion
what did Britain have to do in response to IMF loan
cut public spending
what were the economic effects of IMF loan
economy recoveredw
what were the political effects of IMF loan
showed Britain to be in decline
conservatives declared it an international humiliation