How successful was Edward Heath as Prime Minister? Flashcards
1
Q
Heath’s aims:
A
- Strengthen the economy and curb inflation.
- Legislate to transform industrial relations.
- Create ‘one nation’ of regional development, faster economic growth, social services, maintenance full employment.
- Apply to EEC (Common Market)
2
Q
Economic record:
A
- Inherited inflation rate of approximately 5% per annum –> this reached 10% 4 years later.
- Level of employment was no higher in 1974 than in 1970 –> no. working days lost to strikes in 4 years was double the 6 years under Heath.
- Inherited balance of payments surplus but left a substantial deficit.
- Called a ‘world economic blizzard’
3
Q
When did Britain become a full member of the EEC?
A
1st January 1973
4
Q
October 1971 - parliamentary debate over joining EEC
A
Conservatives:
- 39 MP voted against
Labour:
- Overall opposed terms of entry
- 69 MPs voted in favour
5
Q
Why did 1970 application have a good chance of joining?
A
- President de Gaulle left office in 1969.
- President Georges Pompidou was not opposed to British entry.
6
Q
President Georges terms for joining the Common Market / EEC:
A
- Sacrifice any remaining preferential trade deaths with the Commonwealth.
- Accept EECs policy of heavily subsidising French farmers.
Relations continued to be controversial
7
Q
Industrial Relations Act (August 1971)
A
- Workers have a legal right to join / not join a trade union. –> Challenged the legality of the closed shop.
- National Industrial Relations Court (NIRC) and Industrial Relations Commission (IRC) established.
- Trade union register with NIRC and IRC. –> improved recognition by employers.
- Members of registered unions would enjoy better protection against unfair dismissal.
- Unregistered unions liable to charges.
- Government can order a pre-strike ballot and impose a cooling-off period of 60 days.
8
Q
Industrial Relations Act failure
A
- Similar to ‘In Place of Strife’ –> unpopular with union members
- TUC told members to de-register and defy NIRC.
- Complicated Heath’s negotiations with TUC over strikes about prices and wages.
- Union leaders at local or shop-floor level militant to destroy act and Heath’s government.
- Legal judgement in 1972 ordered release of dock workers who refused to appear before NIRC –> Act creditability questioned.
9
Q
Industrial relations under conservatives:
A
- Inflation –> workers sought to increase wages to prevent living standards from falling.
10
Q
Strikes in 1970 vs 1972
A
Working days lost:
- 1970: 11,000,000
- 1972: 24,000,000
Workers involved:
- Constant
11
Q
Why was inflation severe:
A
- 1971, US President Nixon ended system of fixed exchange rates which had existed since end of WW2. –> devaluing dollar and made British exports more expensive.
- 1972, pound allowed to ‘float’ freely, value determined by money markets. –> downward floats, imports more expensive.
- Worldwide increase in commodity prices –> raw materials, food and fuel.
- Cut taxes and increased public spending to stimulate growth. –> 1972 budgets stimulated demand for good and services while increasing prices.
12
Q
Miners strikes February 1972
A
- Argued for 47% pay increase –> above government’s wage policy.
- National Coal Board offered 8%.
- Jan 1972: 280,000 miners went on strike.
- Emphasised failure of Industrial Relations Act
13
Q
Result of Jan 1972 miners strike:
A
- Gov declared state of emergency.
- Power cuts.
- Yorkshire miners leader Arthur Scargill (co-ordinated flying pockets - groups of miners who aimed to persuade others to join / support strike + travel to power stations and fuel depots to prevent movement of coal by road.)
- Saltey coke depot in Brimingham –> 25,000 massed pickets prevented large supplies of fuel from leaving. (but ugly confrontations lowered miner’s sympathy)
- Gov poorly organised and severe winter weather resulted in strike impacting power supplies.
14
Q
Heath’s U-turn 1972
A
- Initially aimed to reduce state intervention in industry and refusing to rescue failing enterprises –> ‘lame ducks’
- Jan 1971: aircraft division of Rolls-Royce, facing bankruptcy, was nationalised as it was vital to Britain’s defence industry.
- U-turn policy –> increase in unemployment prevented as price of government expenditure reduced.
15
Q
Factors of U-turn policy 1972
A
- Jan 1972: £45 million to Upper Clyde shipbuilders to safeguard 3000 jobs.
- Ministry for Industrial Development set up in April –> provide aid to industry in deprived regions.
- Statutory policies in November to regulate prices and pay increases. –> destroyed by oil price shock of October 1973
16
Q
Oil Price shock of 1973
A
- Oct 1973: Egypt and Syria went to war against Israel.
- Angered by little support, so cut back supplies and x4 prices.
- Britain depended on oil for 50% of energy needs.
17
Q
Strikers in response to Oil Shock
A
November 1973:
- Ban overtime to pursue pay claims that exceeded government’s limit.
- 13 December –> Heath went on TV and declared State of Emergency
- Introduced 3 day working week. –> take effect on 31 December
- February 1974 –> miners voted 81% in favour of strike action
18
Q
3 day working week December 1973
A
- Electricity provided to industry and business on only 3 specified days per week.
- 50 mph speed limit introduced to save petrol.
- TV required to close down at 10.30 p.m.
19
Q
When did Heath call election?
A
38 February 1974
- ‘Who Governs Britain?’
- Wanted decisive support for government policies.
20
Q
Results of 1974 general election:
A
Labour won 200,000 more votes.
Labour seats: 301
Conservative seats: 297
