Economy (+ industrial relations)

Question 1

What was the deficit inherited by Labour?

Answer 1

£800 million

Question 2

What tariff did Wilson impose on imports? What was this reduced to?

Answer 2

15% but was then reduced to 10%

Question 3

Devaluation

Answer 3

1967 - $2.80 to $2.40

Question 4

Balance of Payments 1970?

Answer 4

£700 million trade surplas

note : there had been a gross overestimation of the deficit in 1964 but this wasn’t realised until too late

Question 5

Why was Wilson reluctant to devalue the pound?

Answer 5

Because it was humiliating

Question 6

In Place of Strife

Answer 6

White paper introduced by Barbara Castle in 1969
- union members would have to be balloted
- they would require a clear majority before strike action
This would essentially eliminate wild cat strikes and was met with scrutiny from the trade unions and party members alike as around 150 of them owed their position to the unions

Question 7

Consequences of In Place of Strife for Wilson?

Answer 7

Callaghan was in open revolt. Wilson set up an inner cabinet of seven and discussed with the 3 main union leaders. Nothing came of negotiations and after a last minute meeting, he declared a settlement but this was essentially capitulation and ultimately made the unions stronger.

Question 8

When were the trade union strikes?

Answer 8

1966 and 1967

Question 9

National Plan

Answer 9

Devised by George Brown in 1964 as a way in which to increase industrial production and exports by encouraging cooperation between unions, the govt and employers. Few targets were met and it was slowly phased out by 1967

Question 10

Percentage of R&D spent on defence?

Answer 10

25.6%

Question 11

1964 IMF loan

Answer 11

£1 billion

Question 12

Why was Callaghan made Chancellor over Brown?

Answer 12

Brown was a drunkard who could be impulsive and inconsistent

Question 13

By how much did Callaghan cut the bank rate in 1965?

Answer 13

1%

Question 14

When did Jenkins become Chancellor?

Answer 14

1967

Question 15

Who headed the DEA? When did it dissolve?

Answer 15

George Brown - 1966

Question 16

Where was Brown moved after its dissolution?

Answer 16

Foreign Office

Question 17

Inflation Rate 1970?

Answer 17

6.37%

Question 18

Inflation rate 1964

Answer 18

3.33%

Question 19

Who resigned due to devaluation?

Answer 19

Callaghan

Question 20

What did Brown wish to cap the wage increase at?

Answer 20

3.5%Z

Question 21

Rise wanted by the National Union of Seamen? Wilson’s speech?

Answer 21

Wanted a raise of 17% despite having had one of 10% over the past year. They went on strike but Wilson refused to give a raise. In June 1966, Wilson gave a speech naming the 8 NUS leaders associated with the communist party and accused them of trying to harm the nation.

Question 22

How much did the NUS strike cost Labour?

Answer 22

£40 million

Question 23

Girling Brakes Strikes

Answer 23

September 1968 - an oil valve was turned on by a member of the wrong union causing gear box assemblers to walk out and leaving thousands standing idle. Castle said she was setting an enquiry and the workers returned 4 weeks later.