Economic Developments: Economic Management from 1957-64 under Lloyd and Maudling Flashcards
Who replaced Heathcoat-Amory as Chancellor of the Exchequer?
Selwyn Lloyd
What years was Lloyd Chancellor for?
1960-2
What was a constant threat for the pound?
Devaluation
When did Macmillan finally agree to a budget to raise taxes?
Mid 1961
What did the Mid 1961 budget include in it? (2 things)
Bank rate went to 7% and purchase taxes were raised
How much money did Macmillan request from the IMF in 1961?
£714 million
What issue did the Government face with the Unions with this 1961 budget?
There was a pay pause in the public sector but not the private sector
When did Macmillan put in the first EEC application?
1961
Why did Macmillan put in an EEC application?
Britain was falling behind European countries
What did the EEC application symbolise?
There had been a failure in bringing economic modernisation to Britain
What 2 organisation did Lloyd set up to deal with the modernisation problem?
National Economic Development Council (NEDC)
National Incomes Commission (NIC)
What was the purpose of the NEDC?
bring academics, government members and trade unionists together discussing long term economic planning
What was the purpose of NIC?
Managed wages and prices
What was the public’s opinion on the 1961 tax rise budget? What could the NEDC not do?
They were displeased. The NEDC would not restore government popularity
What is an example of Conservative support decreasing in 1962?
March 1962 the Liberals won a seat in a by-election in Orpington, Kent. A suburban middle class area
What was significant about this seat loss for the Conservatives?
Even typical constituencies who would vote for Conservatives went against them
What did the 1962 budget introduce?
Taxes on sweets and ice cream
What did Labour say about the 1962 budget and what happened to Lloyd as a result?
Labour said ‘taxing the children’s pocket money’. Macmillan sacked Lloyd
What was significant about Selwyn Lloyds sacking?
The news of it got to the papers before Lloyd knew about it
What event occurred after the sacking of Lloyd?
The Night of the Long Knives - 1/3 of the cabinet were sacked
What was a positive thing about the Night of the Long Knives?
It helped to get rid of some old Establishment politicians and make room for the new generation
What happened to the 1961 EEC application? Why?
It was vetoed by De Gaulle in 1963. He felt the Commonwealth would obstruct EEC operations
Who replaced Lloyd as Chancellor?
Reginald Maudling
What did Maudling do? What was the result of this in 1963 and 1964?
He pushed the economy in to a ‘go’ phase. Britain’s growth rate went from 4% in 1963 to 6% in 1964
How much did Exports and Imports rise from 1961-64?
Exports rose 10%
Imports rose over 20%
What did Maudlings ‘go’ phase result in?
A balance of payments deficit
How can economic management of the early 1960’s be seen?
Macmillan was now making the Unions and the public and his own party displeased with what he gave
