Economy (+ industrial relations) Flashcards
What was the deficit inherited by Labour?
£800 million
What tariff did Wilson impose on imports? What was this reduced to?
15% but was then reduced to 10%
Devaluation
1967 - $2.80 to $2.40
Balance of Payments 1970?
£700 million trade surplas
note : there had been a gross overestimation of the deficit in 1964 but this wasn’t realised until too late
Why was Wilson reluctant to devalue the pound?
Because it was humiliating
In Place of Strife
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
Consequences of In Place of Strife for Wilson?
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.
When were the trade union strikes?
1966 and 1967
National Plan
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
Percentage of R&D spent on defence?
25.6%
1964 IMF loan
£1 billion
Why was Callaghan made Chancellor over Brown?
Brown was a drunkard who could be impulsive and inconsistent
By how much did Callaghan cut the bank rate in 1965?
1%
When did Jenkins become Chancellor?
1967
Who headed the DEA? When did it dissolve?
George Brown - 1966
Where was Brown moved after its dissolution?
Foreign Office
Inflation Rate 1970?
6.37%
Inflation rate 1964
3.33%
Who resigned due to devaluation?
Callaghan
What did Brown wish to cap the wage increase at?
3.5%Z
Rise wanted by the National Union of Seamen? Wilson’s speech?
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.
How much did the NUS strike cost Labour?
£40 million
Girling Brakes Strikes
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.
