How Far Did 'Consensus Politics' Operate, 1951-1979? Flashcards
Welfare:
Winston Churchill (1951-55) Conservative
Main policies similar to Labour- 1954, The Economist described them as ‘Butskellism’ (Butler(C) + Gaitskell(SC))
Keynesian commitment to create employment, gov. public works schemes
Unemployment 300,000 in 1954, Cons. built 300,000 houses each year 1951-54 (Housing Minister MacMillan)
Welfare:
Antony Eden (1955-57) Conservative
‘One nation’ Tory, believed it was the duty of gov. to look after poorest in society
Used gov. money to reduce unemployment, July 1955- fallen to 215,000
Churchill + Eden- Analysis
Eden’s belief in looking after poorest is traditionally Labour
Both parties developed welfare state
Very closely aligned
Welfare:
Harold MacMillan (1957-63) Conservative
Douglas-Home (1963-64) Conservative
Believed gov. should use money to ensure full employment, continued ‘middle way’ + ‘mixed economy’
1959- Chancellor, Thorneycroft, + others resigned over high welfare budget + spending
1964- serious economic problems, unemployment rose to 878,000, defence spending at $1.7 billion
Borrowed £714 million from IMF, didn’t devalue pound
Industrial:
Harold MacMillan (1957-63) Conservative
Douglas-Home (1963-64) Conservative
Believed industrial harmony essential- ‘corporatist’ approach
National Development Council and Office (NEDDY)- encouraged union + industry cooperation + National Incomes Commission (NICKY)- gave ‘guidance’ on ‘reasonable’ pay increases, largely ignored
MacMillan + Douglas-Home- Analysis
MacMillan- moderate Conservative, beliefs overlapped with Labour
‘Rebellion’ from Thorneycroft showed cracks in consensus
Aimed to encourage cooperation through NEDDY + NICKY largely ignored, voluntary
Welfare:
Harold Wilson (1964-70) Labour
Refused to abandon social reform/welfare state, despite deficit, remained committed to full employment, improving pensions + building 500,000 homes a year
1964- deficit budget of £800 million
1966- social welfare 5% of GDP
1967- devalued pound sterling from $2.80 to $2.40
Industrial:
Harold Wilson (1964-70) Labour
1964- unions increasingly militant- 2,251 strikes, over 1 million workers
Rising inflation, caused by rising wages- introduced National Board on Prices and Incomes + Prices and Incomes Act (1966)- 6 month wage freeze
1969- attempted to introduce ‘In Place of Strife’- restrict strikes + give power to imprison workers
Harold Wilson- Analysis
Labour continued to commit to welfare spending, this damaged economy long-term
Government and union relations begin to breakdown- breakdown of consensus
Welfare:
Edward Heath (1970-74) Conservative
1970- Selsdon Park meeting, ‘new style of government’
Spending cuts- council house funding, free school milk, inc prescription charges
£300 million in cuts- first budget
But some inc spending
1975- National Insurance Act- extended pension rights (100,000), established disability benefit, inc child allowances, rent-subsidies
Industrial:
Edward Heath (1970-74) Conservative
Modernisation should come from private companies, not state imposition
Abolished NBPI + repealed Prices and Incomes Act (1966)
1971- Industrial Relations Act- implemented ‘In Place of Strife’ proposals, but failed- unions ignored + reluctant to enforce
Miners’ Strike (1971), humiliating defeat for Heath
Overall:
Edward Heath (1970-74) Conservative
1972- Inflation risen to 15%, unemployment increased from 2% to 6&
Forced to abandon ‘new style of government’ and return to consensus- reinstated wage controls
Edward Heath- Analysis
Deviation from heavy spending + Keynesian economics
Wasn’t effective in improving economy
Attempt to move away from consensus, but not entirely
Breakdown of, then return to consensus
Welfare:
Harold Wilson (1974-76) Labour (1)
1974- Cabinet challenging using gov. money to create jobs
Chancellor, Healey, argued creating employment pushed prices up, led to inflation
Remained committed to welfare state- 25% inc. in pension rates, freeze on council house rent, Invalid Care Allowance Act (1975), Universal Child Benefit Act (1975)
