Economic Developments: The Economy from 1964-70 Flashcards
Who was the Labour chancellor from 1964-67?
James Callaghan
How much did Callaghan attempt to increase import taxes?
15%
What was the foreign opinion on Callaghans import tax?
It was unpopular
What was a problem with Callaghans import tax?
It could have resulted in foreign retaliation tarriffs
What happened to the import tax eventually?
It was reduced to 10% and was abolished within the year
What was a positive impact on Callaghans initial import tax??
It saved the government £150 million on imports
Which 2 taxes did Callaghan raise to try and help deflation?
Income tax Petrol tax
What did Callaghans 1965 budget do?
Cut bank rates by 1%
What is one inefficient thing about Callaghans 1965 budget with bank rates?
They had gone up 2% in the previous year
What does DEA stand for?
Department of Economic Affairs
Who was put in charge of the DEA?
George Brown
What was the DEA’S national plan?
Introduce a prices and incomes policy
What happened to the DEA with their prices and incomes policy? What was the DEA’s situation by 1966?
It’s prices and incomes policy wasn’t passed and the organisation was dead by 1966
Who instead got a prices and income policy to pass?
A prices and incomes board
What did the Prices and incomes policy that was introduced result in?
National Union of Seamen strike
What did the union strikes help to create in relation to the pound?
A run on the pound
How much income did the government miss out on from the NUS strikes?
£40 million
Who made an aid package to get Labour through 1964-65?
Lord Cromer
What did the Bank aid package cause with exports??
They started to outweigh imports
What would Labour do if they wanted to borrow more money?
Implement more deflationary measures
What war occurred in 1967? What did it result in and for how long?
Arab-Israeli war closed the Suez canal until 1975
When did Labour devalue the pound?
1967
How much did Labour devalue the pound by?
14%
What was the formation of the DEA an attempt at?
Corporatism
