chapter ten Flashcards
when did labour come back into power (70s)
march 1974
issues when wilson came into office 1974
inflation 15%
bot £3billion deficit
trade unions issues
northern ireland situation delicate
labour party very divided
minority / hung government
when did wilson call a new election and why
october 1974 to try and get a majority government (ended up with an overall majority of 3)
how did wilson deal with trade unions
whilst in opposition, wilson negotiated the social contract with the trade unions congress in 1973
this led to easier communication and eventually industrial relations had improved (with NUM and TUC) enough for the 3 day week to-end
wilson also adjusted economic policy to purposefully not annoy the unions + had economic roles filled by left-leaning labour members
social contract
this would involve voluntary pay restraint by the trade unions and in return the government would repeal heaths industrial act and pay board
economy under wilson (70s)
heaths budget introduced increased taxes and public spending cuts to deal with stagflation
set up the national enterprise board 1974
more formal pay restraint policy introduced 1975
led to more party divides between the left and right of the party
national enterprise board
1974
meant to administer the governments share holdings into private companies and give financial aid; meant to increase investment but had its effectiveness questioned
when did callaghan replace wilson (due to retirement)
1976
economy 1976
the poor balance of payments was putting pressure on sterling; concerns of britain not having enough reserves to support it.
callaghan had to give a speech saying gov couldnt ensure full employment due to potential economic crisis and to fix the economy in the long term
government applied for an emergency loan from the imf due to anxieties around a run on the pound; the chancellor received a loan of £3 billion and the gov had to make big spending cuts
international monetary fund (imf)
formed at the end of wwii to promote economic stability and growth across the world, can give loans to governments
result of the 1976 delicate economic policies
imf crisis handled well by callaghan
economy recovered; but britain looked weak and conservatives used this as proof of labour brining britain to global humiliation
inflation fell to 10% and unemployment still high but started to fall and numbers of day lost to industrial disputes falling to a 10 year low
when and what was devolution under callaghan
1977 due to a stronger british economy
devolution; the transfer of powers to a lower level of government
depite unpopularity from english politicians, 1978 Devolution Act was passed opening ways for referendums
labours position in government 1977
conservatives demanded a vote of no confidence where labour lost the majority, but due to the lib lab pact was able to stay in power
in return for lib lab pact, callaghan promised to move ahead with devolution for wales in scotland
result of the devolution referendums
vote in wales conclusively against devolution
in scotland votes for devolution > votes against it but rules disqualified the votes due to voter turnout
led to scottish nationalist mps withdrawing support from labour, reducing labours power in the lib lab pact
winter of discontent
started autumn 1978-march 1979
TUC denied labours proposed wage increase limit of 5% a year; encouraging trade unions to put in higher pay demands (e.g. lorry drivers 15%)
led to industrial dispute and strikes
not as serious as e.g. miners strike 1974 but created industrial unrest