Heath 1970-74 Flashcards
Possible essay question: “The miners strike was the main reason why Heath lost the 1974 election” Give 3 other possible factors
Economic U turn
The Troubles
The Oil Crisis
Give some background on Heath: 2 strengths and 2 weaknesses
S - was experienced as chief negotiator for the EEC and 5 years in opposition
S - new right wing ideology on economy called Selsdon Programme - less state intervention
W - Not as sharp or charismatic as Wilson in debates
W - Not very bothered by rivals in the party
What was Heath’s economic U-turn?
He began with Selsdon Programme in 1970 so taxes were cut by £500m and corporation tax by 40% also they removed free milk for children. This was the Barber Boom. But this increased stagflation and unemployment was at 899,000 in 1972 so he decided to nationalise Rolls Royce which he said he wouldn’t (lame duck of industry) and gave money to Clyde ship builders to stop them going bankrupt (state intervention)
What was the impact of this U-Turn?
It did help the economy in the short term as unemployment was at 500,000 by 1973 but it meant they were back in stop-go again. Also it made him look like a weak leader who went back on his promises.
What was the oil crisis of 1973?
The Middle East was suffering from the Yom Kippur war in 1973 which led to the Organisation of Petroleum Exporting Countries (OPEC) drastically reducing oil supply. This led the cost of fuel to rise by 400% and Britain to fall into a recession.
How did the oil crisis positively help the miners?
The lack of oil available made coal even more vital so the miners had more leverage over the government.
How did Heath fail in his reaction to the oil crisis?
He tried to impose a national incomes policy which would impose fixed wages by law - but this was unpopular and also failed resulting in 2% fall in national output and more inflation.
What industrial action did Heath preceding the Miners strike? and did he u turn?
Industrial Act 1970 - extension of In Place of Strife - created the idea of ‘unfair industrial practice’ restricting rights to strike. Also created National Industrial Relations Court to judge validity of strikes and the ‘cool-off’ period before strike can start.
Industry Act 1972 - agreed to abandon free market regulation of wages and instead to negotiate with the TUC and CBI.
What were the effects of Heath’s industrial action?
1972 - total amount of working days lost to strike was 23,909,000 highest since general strike.
Firefighters and power worker went on strike in 1973.
Looked weak to right wingers for Industry Act.
What happened in the miners strike?
in 1972 they go on strike for a 45% pay rise then in 1973 after the oil crisis they had more leverage bu the government wouldn’t give in as they couldn’t afford the pay rise. The miners refuse the offer made by new Employment secretary Willie Whitlaw in 1974 leading to Heath imposing a 3 day week.
What were the political consequences of the miners strike?
It led to Labour looking favourable as they had closer relations to the unions so may have more control over them. Also socially he was unpopular cutting off entertainment like TV at 10:30.
Also he made himself look desperate by calling a 1974 election based on “Who governs Britain?” the TU’s or the Conservatives.
What were the economic consequences of miner’s strike?
As businesses could only be open for 3 days a week (only essential services allowed like supermarkets and hospitals) this reduced production dramatically so took away profits. Also not giving into the miners meant a a shortage of coal and a BOP crisis.
What of the February 1974 election?
The general election was a hung parliament as Labour won 4 seats and the Tories lost 28 - the first hung parliament since 1929. Heath resigned when he realised he couldn’t agree to a coalition so Wilson returned with a minority government.
