Healey and Benn Flashcards
What triggered a surge in inflation after Labour returned to power in 1974?
Initial wage increases under Labour to resolve industrial unrest led to a rapid rise in inflation.
What warning did Chancellor Denis Healey give in January 1975?
In a speech in Leeds, Healey warned that wage inflation would lead to unemployment and stressed the need to control public spending.
What measures did Healey implement in his April 1975 budget?
He introduced steep tax rises and cuts in public spending—unusual policies for a Labour government.
What was the National Enterprise Board (NEB) and who set it up?
The NEB was created by Tony Benn in 1974 to manage the government’s shareholdings in private companies and provide financial aid.
What controversial move did the NEB make in 1975?
It nationalised British Leyland, a failing car manufacturer—raising concerns about the government supporting ‘lame duck’ industries.
How did Labour’s left wing view the government’s economic policies in 1975?
Left-wing figures like Benn and Foot opposed pressure on trade unions and favoured less state interference in industry.
What was introduced in 1975 as the Social Contract failed to limit wage demands?
A more formal policy of pay restraint, which deepened divisions within the Labour Party.
