Economic Developments: Economic Management from 1957-64 under Lloyd and Maudling Flashcards
Who replaced Heathcoat-Amory as Chancellor of the Exchequer?
Lloyd
What years was Lloyd Chancellor for?
1960-62
What was a constant threat for the pound?
Devaluation
What year did Macmillan agree to raise taxes?
1961
What were interest rates put up to in 1961?
7%
How much money did Macmillan request from the IMF in 1961?
£700 million
What did Macmillan do with employees in public sector jobs’ wages?
He introduced a pay pause
When did Macmillan put in the first EEC application?
1961
Why did Macmillan put in an EEC application?
Britain was falling behind European countries
Who set up the National Economic Development Council and National Incomes Commission?
Lloyd
What was the purpose of the National Economic Development Coucnil (NEDC)
To bring the government and trade unionists together to do long-term economic planning
What was the purpose of the National Incomes Commission?
To manage wages of employees
What was the purpose of the creation of the National Economic Development Council in relation to the public?
It was to try and improve public relations
How did the public feel about the 1961 budget?
They were opposed to it
Where did the Liberals win a seat in a by-election in 1962?
Orpington
What was the class demographic of Orpington?
Middle class
What did the 1962 budget introduce taxes on?
Introduced taxes on sweets
What did Labour say about the 1962 budget?
Labour said they were taxing children’s pocket money
How did Macmillan respond to Lloyd’s 1962 Budget?
Macmillan sacked Lloyd
Did the Media or Selwyn Lloyd get notified of his sacking first?
The media found out about Lloyd’s sacking before Lloyd was told about it
What event occurred after the sacking of Lloyd? What fraction of Macmillan’s cabinet were sacked?
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 old Establishment politicians
What happened to the 1961 EEC application? Why?
It was vetoed by De Gaulle. He felt the Commonwealth would obstruct EEC operations.
Who replaced Lloyd as Chancellor?
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
Did Maudling create a “stop” or “go” phase in his 1963 budget?
Created a “go” phase
What was Britain’s GDP growth in 1963 and in 1964?
1963 - 4%. 1964 - 6%
How much did exports rise from 1961 to 1964?
Exports rose by 10%
How much did Imports rise from 1961-64?
Imports rose by 20%
What did Maudlings ‘go’ phase result in?
A balance of payments deficit
What was the Balance of Payments deficit in 1964?
£700 million
When was the Beeching Report published?
1963
What did the Beeching Report recommend?
Close 30% of Britain’s rail networks
What was the impact of the Beeching Report for rural attractions?
Holiday towns were left with no work
