economic specific facts 1970-1979

Question 1

1971 Industrial Relations Act

Answer 1

• brought in by Robert Carr
• extension of ‘In Place Of Strife’
• restricted right of workers to strike by introducing ‘unfair industrial practice’
• national industrial relations court was established to judge validity of strike action
• unions were required to put themselves on government register to maintain legal rights

Question 2

what was John Davies appointed to and what did he advise?

Answer 2

he was appointed to head of new department of trade and industry (DTI) and he advised against government helping ‘lame ducks’

Question 3

how much money did the 1972 budget pump into the economy?

Answer 3

£2.5 billion

Question 4

what were the consequences of the 1972 budget?

Answer 4

1974 GDP decrease of 2.5%
Heath forced to abandon plans to expand public spending

Question 5

what was the inflation at the end of 1971?

Answer 5

15%

Question 6

what company did the DTI nationalise in 1971?

Answer 6

Rolls Royce

Question 7

what did 1973 see

Answer 7

the highest levels of unemployment in the previous 45 years

Question 8

what did the industrial relations act do?

Answer 8

made trade unions more fearful and so continued in their protesting

Question 9

what figure was constant through the years 1970-1974?

Answer 9

employment

Question 10

how much did oil price rise by after the 1973 crisis?

Answer 10

the price quadrupled

Question 11

what was one of the most significant demands of joining the EEC?

Answer 11

the Commonwealth food and goods would no longer enter Britain preferential terms-goods would have a European tariff

Question 12

from 1973-1980 the price of oil increased by what per barrel?

Answer 12

$2 to $35

Question 13

what did the balance of payment deficit increase to after the oil crisi?

Answer 13

• balance of payments deficit rose to £1 billion

Question 14

what did the inflation rate rise to after the oil crisis?

Answer 14

16%

Question 15

what did the value of the sterling drop to after the oil crisis?

Answer 15

$1.57

Question 16

what did unemployment do between 1974-76?

Answer 16

doubled to 1.44 million

Question 17

under Heath what did the commodity price rise by?

Answer 17

160%

Question 18

what was the policy name produced by the EEC which led to increasing of food prices?

Answer 18

Common Agricultural Policy (CAP)

Question 19

what did Wilson increase the top rate of tax to?

Answer 19

75-83%

Question 20

what was the inflation in 1975%

Answer 20

25%

Question 21

who began to negotiate with the IMF for a loan?

Answer 21

Dennis Healey-chancellor of the exchequer

Question 22

how much was the loan which Healey attempted to negotiate?

Answer 22

£3 billion

Question 23

what did the terms of the IMF loan require?

Answer 23

cuts in public expenditure

Question 24

when did the government receive the IMF loan?

Answer 24

1979

Question 25

what did Tony Benn claim about the IMF loan?

Answer 25

the government's decision to give into the international bankers deprived the socialist government of a moral highground, paving the way for Thatcher

Question 26

what did the terms of the IMF loan do to the unity of Labour?

Answer 26

it outraged left and unions which grew division between left and centre right of Labour party

Question 27

what was established in 1975?

Answer 27

National Enterprise Board

Question 28

who influenced the industrial policy?

Answer 28

Stuart Holland

Question 29

what did the industrial policy do?

Answer 29

extended public ownership of companies by having equity in businesses such as British leyland, Rolls Royce, Ferranti

Question 30

when did the recession end?

Answer 30

by 1976

Question 31

what were the living standards of 1978 similar to?

Answer 31

those of 1973

Question 32

what did pensions increase in real terms from 1974-79?

Answer 32

20%

Question 33

what was inflation by the end of 1979?

Answer 33

17.24%

Question 34

what did the social contract help do?

Answer 34

helped re-stabilize the economy by limiting pay rises