Economic Developments: Economic Management from 1957-64 under Lloyd and Maudling

Question 1

Who replaced Heathcoat-Amory as Chancellor of the Exchequer?

Answer 1

Selwyn Lloyd

Question 2

What years was Lloyd Chancellor for?

Answer 2

1960-2

Question 3

What was a constant threat for the pound?

Answer 3

Devaluation

Question 4

When did Macmillan finally agree to a budget to raise taxes?

Answer 4

Mid 1961

Question 5

What did the Mid 1961 budget include in it? (2 things)

Answer 5

Bank rate went to 7% and purchase taxes were raised

Question 6

How much money did Macmillan request from the IMF in 1961?

Answer 6

£714 million

Question 7

What issue did the Government face with the Unions with this 1961 budget?

Answer 7

There was a pay pause in the public sector but not the private sector

Question 8

When did Macmillan put in the first EEC application?

Answer 8

1961

Question 9

Why did Macmillan put in an EEC application?

Answer 9

Britain was falling behind European countries

Question 10

What did the EEC application symbolise?

Answer 10

There had been a failure in bringing economic modernisation to Britain

Question 11

What 2 organisation did Lloyd set up to deal with the modernisation problem?

Answer 11

National Economic Development Council (NEDC)
National Incomes Commission (NIC)

Question 12

What was the purpose of the NEDC?

Answer 12

bring academics, government members and trade unionists together discussing long term economic planning

Question 13

What was the purpose of NIC?

Answer 13

Managed wages and prices

Question 14

What was the public’s opinion on the 1961 tax rise budget? What could the NEDC not do?

Answer 14

They were displeased. The NEDC would not restore government popularity

Question 15

What is an example of Conservative support decreasing in 1962?

Answer 15

March 1962 the Liberals won a seat in a by-election in Orpington, Kent. A suburban middle class area

Question 16

What was significant about this seat loss for the Conservatives?

Answer 16

Even typical constituencies who would vote for Conservatives went against them

Question 17

What did the 1962 budget introduce?

Answer 17

Taxes on sweets and ice cream

Question 18

What did Labour say about the 1962 budget and what happened to Lloyd as a result?

Answer 18

Labour said ‘taxing the children’s pocket money’. Macmillan sacked Lloyd

Question 19

What was significant about Selwyn Lloyds sacking?

Answer 19

The news of it got to the papers before Lloyd knew about it

Question 20

What event occurred after the sacking of Lloyd?

Answer 20

The Night of the Long Knives - 1/3 of the cabinet were sacked

Question 21

What was a positive thing about the Night of the Long Knives?

Answer 21

It helped to get rid of some old Establishment politicians and make room for the new generation

Question 22

What happened to the 1961 EEC application? Why?

Answer 22

It was vetoed by De Gaulle in 1963. He felt the Commonwealth would obstruct EEC operations

Question 23

Who replaced Lloyd as Chancellor?

Answer 23

Reginald Maudling

Question 24

What did Maudling do? What was the result of this in 1963 and 1964?

Answer 24

He pushed the economy in to a ‘go’ phase. Britain’s growth rate went from 4% in 1963 to 6% in 1964

Question 25

How much did Exports and Imports rise from 1961-64?

Answer 25

Exports rose 10%
Imports rose over 20%

Question 26

What did Maudlings ‘go’ phase result in?

Answer 26

A balance of payments deficit

Question 27

How can economic management of the early 1960’s be seen?

Answer 27

Macmillan was now making the Unions and the public and his own party displeased with what he gave