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Unit 5: Labour and Conservative governments > How successful was Edward Heath as prime minister? > Flashcards

How successful was Edward Heath as prime minister? Flashcards

1
Q

What did Heath promise to do?

A

Strengthen the economy and curb inflation

Legislate to transform industrial relations

Create ‘one nation’, promising regional development, faster economic growth, better social services, and the maintenance of full employment

Apply to join the EEC

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2
Q

What did Heath tell his party conference?

A

‘we were returned to office to change the course of history of this nation - nothing less’

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3
Q

What did the policy proposals suggest?

A

That they would allow market forces to determine prices and wages, and would be less involved in managing the economy

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4
Q

What did Heath deem unacceptable and what did he believe?

A

High levels of unemployment

That the government, by channeling investment appropriately, still had a significant role to play in regenerating run-down parts of the country

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5
Q

What was the inflation rate in 1970 and 1974?

A

1970: 5%

1974: 10%

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6
Q

What was GDP in 1970, 1973, and 1974?

A

1970: 2.7%

1973: 6.5%

1974: -2.5%

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7
Q

What was spending in 1970, 1972, and 1974?

A

1970: 38.52%

1972: 37.37%

1974: 42.35%

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8
Q

What happened on 1 January 1973?

A

Britain became a full member of the EEC

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9
Q

How many Conservative MPs voted against EEC entry and how many Labour MPs voted for it?

A

39

69

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10
Q

What did Heath believe?

A

That membership of the EEC would give British industry better access to Europe’s market and that European competition would stimulate modernisation and development

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11
Q

Why did Britain’s application have a much better chance of success?

A

CDG had left office and Pompidou was not opposed to British entry

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12
Q

What was Pompidou determined about and what was the consequence?

A

That Britain should enter on French, not British, terms

It angered some Conservatives who were mistrustful of Europe, believing that it threatened Britain’s independence

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13
Q

What did Britain have to do?

A

Sacrifice any remaining preferential trade deals with the Commonwealth

Accept the EEC’s policy of heavily subsidising French farmers

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14
Q

What was the impact of membership?

A

Had little immediate impact on Britain’s economic performance

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15
Q

What did Heath believe the 1970 election victory had given him?

A

A popular mandate to legislate on industrial relations as there was considerable popular support for government action to curb strikes

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16
Q

What Act was passed in August 1971 and what did it aim to do?

A

The Industrial Relations Act

Balance the rights of individual workers with those of the unions, while reducing the likelihood of strikes

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17
Q

What were the main provisions of the Industrial Relations Act?

A

Challenged the legality of the closed shop

The NIRC and the IRC were established

Trade unions were required to register with the NIRC and IRC

Members would enjoy better protection against unfair dismissal

Unions which failed to register would be liable for claims for damages

The Act gave the government power to order a pre-strike ballot and impose a cooling-off period of up to 60 days

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18
Q

Why did the Act fail?

A

The regulations were similar to ‘In Place of Strife’

The TUC told its members to de-register and defy the NIRC

It increased the bitterness of confrontations between unions and employers

It complicated Heath’s efforts to negotiate with the TUC

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19
Q

What were many union leaders and what did they hope to do?

A

Militant

Destroy the Industrial Relations Act and bring down the Heath government

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20
Q

What undermined the Act?

A

A legal judgement in 1972 ordering the release of some dock workers who had refused to appear before the NIRC

21
Q

What increased the frequency of strikes?

A

Union hostility to the Industrial Relations Act
Rising inflation; workers sought to increase their wages to prevent their living standards falling

22
Q

How many working days were lost to strikes in 1970, 1972, 1973, and 1974?

A

1970: 10.9 million
1972: 23.9 million
1973: 7.2 million
1974: 14.7 million

23
Q

Why was inflation severe in the 1970s?

A

In 1971 Nixon ended the system of fixed exchange rates which devalued the dollar and made British exports more expensive

In 1972 the pound was allowed to ‘float’ freely and imports became more expensive

There was a worldwide increase in prices of raw materials, food, and fuel

Heath cut taxes and increased public spending in the 1972 budget which stimulated a demand for goods and services but also pushed up prices

24
Q

What was the 1972 budget and how much would be required to pay for it?

A

£1 billion cut in income taxes

£3.4 billion

25
Q

What was the BOP as a % of GDP in 1970, 1971, and 1974?

A

1970: 0.6%
1971: 1.1%
1974: -4.4%

26
Q

What triggered the miners’ strike?

A

The miners’ demand for a 43% pay increase and the 8% offered by the National Coal Board

27
Q

What did Heath believe wage increases should be?

A

4%

28
Q

What happened in January 1972 and what was the government forced to do?

A

280,000 coal miners came out on strike

Declare a state of emergency as there were regular power cuts throughout the country

29
Q

What did the government concede?

A

A 30% wage increase

30
Q

Why was the miners’ strike successful?

A

Skilfully organised, especially by Scargill, who coordinates flying pickets

There were violent incidents (at the Saltley coke depot 15,000 massed pickets prevented large supplies of fuel from leaving the depot) which didn’t damage public sympathy for the workers

The government was poorly organised to cope with the strike and hadn’t stockpiled coal

31
Q

Why was the success of the strike damaging for the government?

A

It encouraged other workers to strike for pay increases

Successful strikes added to inflationary pressures

The government looked weak in the face of union hostility

It emphasised the failure of the Industrial Relations Act

32
Q

What did Heath’s government begin with the intention of doing?

A

Reducing state intervention in industry

Refusing to rescue failing enterprises (lame ducks)

33
Q

What happened in January 1971?

A

The aircraft division of Rolls-Royce, facing bankruptcy, was nationalised because it was regarded as vital to Britain’s defence industry

34
Q

What was Heath not prepared to do?

A

Allow unemployment to increase as the price of reducing government expenditure

35
Q

What happened in February 1972?

A

The government granted £35 million to Upper Clyde Shipbuilders to safeguard its 3000 jobs

36
Q

What was set up in April 1972?

A

A new Ministry for Industrial Development to provide aid to industry in deprived regions of the country as part of the government’s plan to stimulate growth

37
Q

What was announced on 6 November 1972 and what did it follow?

A

Statutory controls on pay and prices (a freeze for 90 days)

38
Q

What happened in October 1973?

A

Egypt and Syria went to war against Israel to try to recover the land lost in the war of 1967. Oil-producing countries, angry at Western support for Israel, cut back supplies and quadrupled their prices

39
Q

How did this affect Britain?

A

A barrel of crude increased from £1.5 and £1.67 to between £3.85 and £5 since Britain depended on oil for 50% of its energy needs

40
Q

What happened in November 1973?

A

The miners began an overtime ban and demanded a 35% pay increase

41
Q

What did Heath try do do in 1973?

A

Negotiate directly with the leaders

42
Q

What was the aim of the miners’ strike?

A

Halve production of coal

43
Q

What did the national conference do?

A

Pass resolutions for the election of a Labour government committed to true socialist policy

44
Q

What happened on 13 December?

A

Heath declared a State of Emergency and announced the introduction of a three-day working week:

Electricity would be provided to industry and businesses only on three specified days per week

A 50mph speed limit was introduced

Television was required to close down at 10.30 pm

45
Q

What happened in February 1974?

A

The miners voted 81% in favour of strike action

46
Q

How did Heath respond to the strike and what did he hope to get?

A

Called an election for 28 February on the issue of ‘Who Governs Britain’

Decisive support for his policies

47
Q

What was the result of the election?

A

The Conservatives won 37.8% of the vote and 297 seats

Labour won 37.1% of the vote and 301 seats

48
Q

What happened on 4 March 1974 and why?

A

Wilson became PM again

Heath’s efforts to form an anti-Labour coalition failed

49
Q

What was the unemployment rate in 1971 and 1974?

A

1971: 4.1%

1974: 3.7%

Unit 5: Labour and Conservative governments (7 decks)

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