Economic Developments: The Economy from 1964-70

Question 1

Who was the Labour chancellor from 1964-67?

Answer 1

James Callaghan

Question 2

How much did Callaghan attempt to increase import taxes?

Answer 2

15%

Question 3

What was the foreign opinion on Callaghans import tax?

Answer 3

It was unpopular

Question 4

What was a problem with Callaghans import tax?

Answer 4

It could have resulted in foreign retaliation tarriffs

Question 5

What happened to the import tax eventually?

Answer 5

It was reduced to 10% and was abolished within the year

Question 6

What was a positive impact on Callaghans initial import tax??

Answer 6

It saved the government £150 million on imports

Question 7

Which 2 taxes did Callaghan raise to try and help deflation?

Answer 7

Income tax Petrol tax

Question 8

What did Callaghans 1965 budget do?

Answer 8

Cut bank rates by 1%

Question 9

What is one inefficient thing about Callaghans 1965 budget with bank rates?

Answer 9

They had gone up 2% in the previous year

Question 10

What does DEA stand for?

Answer 10

Department of Economic Affairs

Question 11

Who was put in charge of the DEA?

Answer 11

George Brown

Question 12

What was the DEA’S national plan?

Answer 12

Introduce a prices and incomes policy

Question 13

What happened to the DEA with their prices and incomes policy? What was the DEA’s situation by 1966?

Answer 13

It’s prices and incomes policy wasn’t passed and the organisation was dead by 1966

Question 14

Who instead got a prices and income policy to pass?

Answer 14

A prices and incomes board

Question 15

What did the Prices and incomes policy that was introduced result in?

Answer 15

National Union of Seamen strike

Question 16

What did the union strikes help to create in relation to the pound?

Answer 16

A run on the pound

Question 17

How much income did the government miss out on from the NUS strikes?

Answer 17

£40 million

Question 18

Who made an aid package to get Labour through 1964-65?

Answer 18

Lord Cromer

Question 19

What did the Bank aid package cause with exports??

Answer 19

They started to outweigh imports

Question 20

What would Labour do if they wanted to borrow more money?

Answer 20

Implement more deflationary measures

Question 21

What war occurred in 1967? What did it result in and for how long?

Answer 21

Arab-Israeli war closed the Suez canal until 1975

Question 22

When did Labour devalue the pound?

Answer 22

1967

Question 23

How much did Labour devalue the pound by?

Answer 23

14%

Question 24

What was the formation of the DEA an attempt at?

Answer 24

Corporatism

Question 25

What is Corporatism?

Answer 25

Getting the government, businesses, industry’s and unions working together to discuss future wage and strike policies

Question 26

What did the implementation of Corporatism help with the popularity of Labour?

Answer 26

The Electorate were impressed with the Corporatism attempt, boosting 1966 election votes

Question 27

Who was Chancellor of The Exchequer from 1967-70?

Answer 27

Roy Jenkins

Question 28

What 2 things did Roy Jenkins do to help with Balance of Payments?

Answer 28

Raised taxes and tightened government spending

Question 29

What was the public impact of Jenkins legislation?

Answer 29

It was unpopular

Question 30

What had Jenkins done for the Balance of Payments by 1969?

Answer 30

Improved Balance of Payments.

Question 31

What was inflation at by 1969?

Answer 31

12%