economic reforms, 1974-76 Flashcards
The first major problem was?
a large surge in inflation due to the rush of large wage increases that were deemed necessary to get out of the industrial crisis had brought down Heath
in January 1975, Chancellor Denis Healy made a speech in Leeds, giving a stern warning of the dangers:
that wage inflation caused unemployment + vital to control public spending
in April 1975, Heath’s budget imposed?
steep rises in taxation + public spending was cut
what was set up in 1974 under Tony Benn?
The National Enterprise Board (NEB) = to administer the government’s shareholdings in private companies
-could also give financial aid
While NEB aim=to increase investment, by 1975?
its effectiveness was being questioned
what cause renewed controversy about the role of government in rescuing ‘lame-duck’ industries?
the government’s decision to nationalise the failing car manufacturer British Leyland
what was also becoming apparent?
that social contract was not limiting wage demands
by 1975 what was introduced?
a more formal pay restraint policy
-shifts in policy intensified party divisions
left-wingers like Micheal Foot and Tony Benn did not want to?
put so much pressure on the unions and they also believed in more, not less, state intervention in industry
what happened in march 1976?
Harold Wilson suddenly resigned as leader of the labour party.
-James Callaghan replaced him
why does Wilson resign?
perhaps had simply ran out of ideas for Britain
