Chapter 5 - Labour And Conservative Governments 1964 - 1979 Flashcards
Why did Labour Party win the 1964 election? Harold Wilson's leadership Electorate regarded Conservatives Revival of the Liberal Party Changes in British Society
Harold Wilson's leadership - Laour much more united than it had ever been and divisions over policy's hadn't disappeared but Wilson able to gloss over them by presenting Labour as modern, dynamic and progressive. Party manifesto promised range of policies to promote economic growth has, full employment, improve welfare/health services, better housing, comprehensive education. Harness science to economic planning and create UK going to be forged in White heat of technological revolution - Wilson seemed personify this new Britain which talented people from backgrounds would succeed How electorate regarded Tories - Blamed for growing economic problems, didn't have answers to problems in unemployment, inflation, industrial unrest and growing disparity in wealth between regions of UK. Tories leader out of touch of modern democratic society and implicated in seedy sex scandals too which seen as old fashioned and self indulgent Liberal Party - Man middle class voters register their protest by by election in Orpington. Liberal revival brought them publicity, increased funding, talented new recruits able to contest more seats than in 1959. Changes in society - more money to spend made people more independent and less willing to accept traditional authority. Attitudes encouraged by cultural changes of the decade in which plays novels and TV examined clas structures satire poked fun at politics and music challenged sex. Grammar schools gave underprivileged backgrounds a way to shine and create new modern classless Britain run with professional scientific competence.
Why was the result in 1964 so close?
Douglas Home leadership
Conservative tax cuts
Attitudes to Labour Party
Election suggested more rejection of Conservative than a endorsement for Labour Douglas Home - turned out to more effective PM than expected more modest, decent, trustworthy while Wilson reputation of political cunning Conservative tax cuts - Maudling Chancellor of Exchequer cut taxes in 1963 budget contributed to trade deficit of £800 million, helped narrow ap between parties as earnings rose and number of unemployment dropped to 300,000 Attitudes to Labour - Voters still distrusted Labour as links to unions and so strikes against government pay policy reduced its support. Internal divisions not resolved & middle class voters disliked nationalisation commitment. Labour fared less than hoped in working class areas where Tories pick up votes due to immigration
How effective was Harold Wilson as prime minister?
Look at the problems he faced when becoming PM
Look at his characteristics
Handling a small majority
Wilson faced…
- majority of only 4 seats
- party promises about modernising society had to be fulfilled
- pressing foreign and colonial problems to deal with
- senior figures in government talented but several of them disliked each other
- economic situation serious
Characteristics
- highly intelligent, hard working, excellent memory for detail
- optimistic, resilient, patient, cool in crisis
- personally kind, charming, generous
- distrustful of party ideology
- sought compromise over conflict
- accepted both wings of party
Wilson had a majority of just 4 but the March 1966 election meant he had a 96 seat majority so his achievement in his leadership had worked. Managed to appear purposeful and resolute, avoided damaging divisions, many voters still blamed Tories for countrys difficulties
Explore the divisions within the Labour Party at the time of Wilson coming to party on the left and the right?
Left: Make Britain fully socialist…
- more sectors of economy under state control
- abolishing/reforming institutions appeared to protect priviledge like independent shools/House of Lords
- Remaining outside EEC
- Abandon nuclear policy
- speeding up decolonisation
- distancing Britain from US foreign policy
Right: modernising agenda which seemed realistic, argued left was vote-losers
- promote economic growth and fairer distribution of wealth by economic planning/taxation policy
- apply to join EEC
- retain Britains nuclear policy
- Maintain close alliance with USA to guarantee security
- Resist demand for further nationalisation
Explore Wilsons transformation on British society
Look at…
1) social reforms, name a few and the effects, why it was important
2) Race relations, effects, consequences
3) Education policy, what, why, effects, evaluate
Important social changes due to increase in prosperity so people travelled more, reduced divisions between social classes, more education, higher standard of living, youth culture, civil rights movemen, women brought demands for equality.
Social reforms included abolishing death penalty in 1969, homosexual acts in private legalised in July 1967, abortin under conditions legal in Oct 1967, voting lowered to 18 in May 1969, equal pay act May 1970 - men and women same pay at work
Some traditionalists outaged, felt encouraged promiscuous and permissive society, some still in favour of death penalty for death
Race relations - new arrivals from COmmonwealth only low paid jobs in working class areas - problem for Labour, immigration unpopular with Labour voters in city areas. Racial prejudice, fear that competition would = lower wages. Race Relations Acts in 1965 and 1968 tacked discrimination but enforcement methods were weak and difficult to secure convictions
Education Policy - Many supporters opposed existing system which divided children on basis of examination at 11 into grammar schools. 1965, Anthony Crosland education secretary began replacing system with compregensive schools for children of all abilities. Comprehensive system led to controversy in many areas where grammar schools offer opportunities usually open to those in indepedent svhools. In higher education, considerable period of expansion. Sir Alec Douglas Home begun to implement recommendations of Robbins Report calling for major expansion of university education to produce sufficiently educated workforce in modern world. Labour government faith in scientific and techonlogical advances maintained commitments. Major change was Open University Wilson felt one of his finest achievements offering adults chance to work on degree on part time basis
Describe the foreign and colonial issues Wilson faced?
1) Vietnam War
2) Southern Rhodesia
3) Common Market
Vietnam War - Wilson believed Britains economic recovery and security depended on close alliance with USA. Left regarded US policies aggressive/imperialist and bitter over Wilsons attitudes. Wilson told Commons support of the Americans but to appease the left he refused Johnsons request for British troops. June 1966 criticised heavy US bombing in North Vietnam. 1967 attempted to broker a peace deal but actions irritated Johnson without going far enough to satisfy the left.
Southern Rhodesia - Wilson attempted to balance different sections of opinion over hadnling of illegal delcaration of indepedence in Nov 1965 by white minority government in Southern Rhodesia. Labour left/Commonwealth of black Africa wanted governemnt to send troops to crush rebellion. Government used economic sanctions believing a workable compromise could be achieved. Proposed settlement thatwould left Smith in power provided majority rule was introduced in future. Smiths refusal let Wilson off the hook allowing him to maintain his stance as opponent of the rebellion. Wilsons tactic risky but no easy solutions to the problem.
Common Market - Wilson believed he could persuade Charles de Gaulle who vetoed UKs application in 1963 but failed. Nov 1967 de Gaulle repealed his veto. Wilson however succeed in maintaining cabinet and party unity over Europe the pro Euros were pleased by application and anti Europeans by its failure.
How did Wilson manage his cabinet due to splits?
Wilson showed considerable political skill in avoiding splits on foreign issues and used cabinet effectively to pass major modernising social policy. PM faced considerable problems in managing difficult cabinet colleagues.
Wilson anxious to avoid internal squabbling that had weakened party in the 50s and hoped to achieve this by giving ministerial jobs to senior party figures from all shades of opinion not just to policy and conflicts between personalities. As cabinet minister Barbara Castle saw in diary in Jan 1968 - spend 3/4s of time in personal pro and anti intrigues instead of getting down to real jobs. Cabinet in fighting reached peak in 1969 when government tried to reform industrial relations but only 4 cabinet resignations during life of Labour government
How successful were the economic policies of the 1964-70 Labour government?
- economic difficulties they had
- Deflation measures
- National Plan
- Devaluation
Explore the successes/weaknesses and reasons
Economic difficulties
- inherited £800 million balance of payments deficit requiring UK firms to improve efficiency and grant wage increases if productivity increased. Use revenue from taxation to improve transport network, maintain investment in nationalised industries, ensure UK well trained workforce.
- In times of inflation, union leaders threat of strike to demand wage increases. Unions resisted power to try to restrict pay increases. High labour costs = goods more expensive and reduced profits
Deflation - tax rises/cuts in government expenditure taking money out of consumers pockets and reduce the spending power of industries and businesses, dcreasing import bill, decreasing gap between imports and exports. In 1964, Callaghan negotiated foreign loans to prevent a run on the pound and introduced deflationary measures including higher taxes on tabacco/alcohol, temporary import surcharge but had to agree to maintain British far eastern bases.
National Plan Sept 1965 - Created new ministry DEA to devise plan to modernise/improve economy/. Set out two targets, annual growth rate of 3.8% and increase in exports of 5.25% each year. Had to create NBPI to ensure ages increases only granted if increase in productivity. Provide investment funds for modernisation of industry, improving worker skills.
National Plan not much success - Treasury jealously guarded role as economic ministry and didnt co-op with DEA, recommendations undermined by Treasury deflation measures to solve economic difficulties, NBPI no power to enforce decisions, relied on trade unions who didnt support wage restraint. DEA wound up in 1969, government sturggled to impose wage restraints and Treasury/DEA pursuing contradictory policies.
Devalution - 1966, seamen strike demanding pay increase, strike damaged exports and poor trade figures threatened run on the pound, government chose deflation to deal with payments deficit, more economic news in 1967, unemployment rose to 2.5 million in 1967. Pound devalued and worth $2.40 instead of $2.80.
Devaluation didnt prevent cuts in spending, Jenkins replaced Callaghan and needed deflation measures to cure the crisis.
Announced forces east of Suez would be withdrawn, prescription charges reintroduced, raising of school leaving age to 16 deferred to 1973, change undrmined education reform. Budget of 1968 deliviered more delfaton increasing taxation by £923 million. Interest rates reduced, value of sterling rose in 1969.
What was the economic record of the Labour government?
Look at…
- high defence expenditure and investment in research/development
- Lack of investment
Labour government no more successful than Tories in tackling weakness of economy. Rate of inflation slowed and unemployment higher in 1970. Britain relative decline continued, % share of world exports down to 11% in 1970.
Britain devoted more national resources for research/development budget to the military than other NATO ountries, reduced investment in other sectors.
Labour did endeavour to improve transport networks by building motorways in north England, encouraged development of sites in Wales, Scotland, Tyneside. Sustained improvement in industrial productivity was undermined by governments deflationary policies imposed cut backs in investment.
How successfully did the Labour government deal with industrial relations?
Look at dealing with the unions
In Place of Strife? Key events, people, what, why
Wilson had to improve industrial relations, win trade union support to modernise UK but economic difficulties in 60s opened rift between government and unions. Wilson felt strikes for higher pay meant disrupted production, labour costs go up and helped contribute to inflation. Industrial relations had to be more strongly regulated if efforts to control prices/wages were to be succeeded
But unions argued country’s lack of competitiveness is blamed on employers and on government investment policies, governments attempts to limit wage increases penalised low paid workers and the rights of unions to bargain freely with employers shouldnt be restricted by laws.
Difficult for Labour government to reform industrial relations due to trade unions were their tradition allies and provided Labour with money. Their block votes at conferences were decisive in determining party policy. The closed shop requiring workers to join particular union enhnced union bargaining power and strikes in nationalised industries cause disruption throughout the country.
In Place of Strife - Wilson 1968 worried by press criticism of failure to tame unions and by Conserbatives plan to reform industrial relations. April he asked Barbara Castle to lead established Ministry of Employment and Productivity and reform relations. 1969 Castles proposals - In Place of Strife… principle proposals = employees legal right to join trade union, government oder ballot bfore strike if believed to be serious threat, unofficial dispute the government order return to work for 28 day calling off period, disputes between unions referred to industrial commission to decide who would be legal binding, would be financial penalties if the commission not obeyed, workers unfairly dismissed entitled to compensation or to get their jobs back.
TUCs and Left wing Labour MPs incensed by IPoS as legal sanctions would introduce the taint of criminality into industrial relations, more than 50 Labour MPs rebelled when debated. Wilson backed down, face saving formula devised which TUCgave solemn/binding undertaking that would monitor strikes, offer considered opinion and advice. Failture contributed to fall of Labour in 1970, as traditional industries declined and white collar employment grew, largest/powerful unions lost members, increase in membership of unions in expanding public sectors but not matched by private sector where employers discouraged union membership.
Why did Labour lose the 1970 election?
Look at Wilsons complacency, supporters, IPoS
Wilson's complacency - Poll before election suggested Wilson approval rating of 51% compared to 28% for Tories. Wilson exuded confidence during campaign believing electineering skills were superior to Heath but was too relaxed. Disillusionment of supporters - Senior cabinet member Crossman thought too many Labour supporters didnt bother to vote and colleague Castle sensed undercurrent of detachment from activists and party audiences. Membership fell to 680,000 in 1970 reducing local activists to campaign. Government had been too right wing, foreign policy too supportive of USA, too much money on defence and not enough on welfare, education, policy of maintaining value of sterling benefited only City of London, working class poorer, abandoned commitment to socialism and interests of working class. 1970 Equal Pay Act was an attempt to win suppor but motivated young people found demonstrating against Vietnam War.
Failure of IPoS - Suggested to many that trade unions selfishly determined to preserve power/influence and more powerful than the government. Mant voters sign of governments wider failure to improve, let alone transform economic performance.
Why did the Conservatives win the 1970 election?
Policy proposals
Edward Heath leadership
Policy proposals - industrial relations law reformed to reduce no of disruptive strikes and inflationary pay settlements. Less state intervention in industry especially if enterprises were loss making. Attempts to control prices/incomes by law would end, Britain apply to join EEC.
Leadership - Heath attacked economic record of Labour government, since 1964 inflation as measured by Retail Price Index risen by 33% and unemployment over 200,000. Heath dealt a major challenge to authoriy when sacked Enoch Powell from shadow cabinet who was fierce opponent of Commonwealth immigration and Labour race relations legislation. Heath recieved criticism but majority of MPs rallied behind leader
How successful was Heath as PM?
1) Aims
2) Economic Record
3) Joining Europe
4) Industrial Relations Act 1971, failures, relations
5) Miners Strike 1972
1) strengthen economy, curb inflation, legislate to transform industrial relations, regional development, faster economic growth, better social services, maintenance full employment, apply to join EEC
2) Tories inherited inflation rate of 5% per annum but reached 10% 4 years later, level of unemployment no higher in 1974 but number of working days lost double Wilsons six years, inherited balance of payments surplus but left deficit
3) UK full member 1st Jan 1973, both parties divided over Europe. Tories 39 MPs sided against joining EEC but 69 Labour MPs wanted to join EEC. Heath advocate of European unity and give industry better access to Europes marketand competition stimulate modernisation and development. Pompidou determined UK enter on French terms, angered Conservative Party and threatened UK independence, sacrifice reamining trade deals with Commonwealth, accept EEC policy of subsidising French farmers.
4) Industrial Relations Act - aimed to balance rights of individual workers with those of unions, reducing likelihood of strikes. Wrokers legal right to join trade union, NIRC and IRC established, trade unions required to register with NIRC and IRC, did would improved rights of recognition by employers, members of register unions enjoy protection against unfair dismissal, unions failed to register liable for claims for damage, Act gave government power to order pre strike ballot and impost cooling off period of up to 60 days. Failure, similar to IPoS, unpopular with union members, TUC set out to make Act unworkable by telling members to de register and defy NIRC. Bitterness of confrontations between unions and employers. Complicated Heaths efforts to negotiate with TUC over strikes about prices/wages. Many union leaders militant in 1970s and hoped not only to destroy Industrial Relations Act but bring down Heath government. When legal judgmeent in 1972 to release dock workers who refused to appear before NIRC, credibility of Act undermined. Relations were less successful than Wilson, frequency of strikes result of union hostility but mainly response to inflation. Prices rose, workers sought to increase wages to prevent their living standards falling. President Nixon ended system of fixed exchange rates which existed since end of WW2, effect of devaluing the dollaar and making British exports more expensive,1972 pound allowed to float freely value determined by money market, poor industrial performance meant pound floated downards in value, imports more expensive. Worldwide increase in commodity prices, Heath government aimed to stimulate growth. By cutting taxes/increasing public spending especially in 1972 budget stimulated demand for goods/services.
5) Miners Strike 1972 - Claim for 47% pay increase was above governments wage policy and 8% offered by Naional Coal Board. 280,000 coal miners came out on strike. Government declared state of emergency and regular power cuts throughout country. By Feb, government anxious for settlement and appointed a commission of inquiry. Awarded miners a large pay increase. Miners skillfully organised who co-ordinated flying pickets: groups of miners who aimed to persuade others to join or support the strike and to travel to power stations and fuel depots to rpevent movement, violence such as Saltley coke depot, 15000 massed picets prevent large supplies of fuel leaving depot, government poorly organised to cope with the strike. Success damaged government due to workers encouraged to strike, added to inflationary measures, government looked weak in face of determined union hostility, emphasised the failure of Industrial Relations Act.
How successful was Heath as PM? (Part 2)
1) U-Turn 1972
2) Oil price shock/three day week
1) U turn - began with intention of reducing state intervention in industry and refusing to rescue failing enterprises. Policy didnt last long. Jan 1971 aircraft division of Rolls Royce faced bankruptcy was nationalised due to regarded as vital to UKs defence industry. Not prepared to allow unemployment to increase as price of rreducing government expenditure and explains what is known as his U turn. In Feb 1972, government gave £35 million to Upper Clyde shipbuilders to safeguard 3000 jobs, new ministry for industrial development set up in April to provide aid to industry in deprived regions of countryas part of plans to stimulate growth but having failed to secure voluntary agreement with unions over wages and salaries, government established statutory policies in Nov 1972 to regulate both prices and pay increases. Some success but destroyed by oil price shock 1973
2) In Oct 1973, two arab states - egypt/suria went to war against Israel to try to recover land lost in war of 1967. Middle Eastern oil rprudcing countrys angry as Western support for Israel cut back supplies and x4 prices. UK depended on oil for 50% of energy needs, decisive impact on prices. In Nov 1973 miners began overtime ban in pursit of a pay claim that exceeded governments limits. Heath tried to negotiate directly with leaders but talks got nowhere. Heath in Dec went on TV to declare state of emergency and announced three day working week, electricity provided to industry and businesses on 3 specific days, 50 mph speed limit introduced, TV required to close at 10:30 pm. In 1974 election, Tories got most votes but Labour got more seats
How effectively did Wilson and Callaghan deal with the problems Britain faced between 1974 to 1979?
1) Minority government?
2) Relations with trade unions
3) Labour party, drift to left, divisions over Europe
4) Wilsons resignation
1) Wilson held another election in Oct 1974, won 319 seats and gained a small overall majority
2) Labour and TUC reached agreement in 1973 called Social Contanct, unions agreed to control wage increases, government promised to keep down prices/provide improved welfare benefits, return to free collective bargaining over wages/no statutory income policy - didnt solve economic difficulties as wage increases continued to exceed inflaion rate. Social Contact suggested trade unions and government had shared ovjectives - lasted until winter 1978 - 1979
3) Labour moved to left during 4 years in opposition, Michael Foot and Tony Benn strong socialist beliefs. But Wilson promsied to renegotiate terms of UK membership of EEC and hold referendum on issue. UKs contribution to budget would be reduced and referendum fixed for 5 June 1975 - Wilson allowed Cabinet freedom to campaign on both sides but result was 2:1 vote in favour of membership as believed success of EEC offered way to overcome economic difficulties.
4) Wilson resigned in March 1976 - although only 60 years old, aware normally excellent memory was beginning to fail him. James Callaghan defeated 5 other senior figures in election to replace him.
