lab weakness 1970 Flashcards
Foreign and Colonial issues (Wilson’s Government) - Vietnam (1956-74)
Vietnam War (1956-74):
Wilson didn’t send troops to support the USA in combat (1966) and attempted to broker a peace deal (1967). This had both positive and negative impacts:
- It united the Labour party
- Alienated Wilson from the US and its president Lyndon Johnson..
Foreign and Colonial issues (Wilson’s Government) - Attempts to join the EEC (1967)
Attempts to join the EEC (European Economic Committee) 1967:
de Gaulle once again rejected Britain’s entry.
Wilson’s attempt to join the EEC appeased both wings of his party. MP’s who wanted to join the EEC were appeased as Wilson had at least tried, and Eurosceptics were appeased as they were denied entry.
Economic problems (Wilson’s government 1964-70)
Wilson inherited a balance of payment deficit of £800 million. The main reason for this was that Britain’s economy had developed at a far slower than most countries post-WW2.
Many economists argued that trade unions contributed to economic difficulties:
- wage demands and threats of strikes at times of inflation were used by the unions
- High labour costs made goods more expensive and therefore less competitive on the global market, as goods from other countries were cheaper
- High labour costs meant less money was invested on research and design or the expansion of industry
However, the labour party were allied and funded by trade unions, which meant they struggled to stand up to them.
In 1960, almost half the workforce began to a union. In fact, Jack Jones, leader of the TUC (union for transport) was viewed as the most powerful man in Britain during Wilson’s office.
what did Wilson fail to achieve?
economic problems continued throughout the period - had to abandon key manifesto policies such as the reintroduction of free prescriptions and raising the school leaving age. rising prices - spending cuts.
unemployment - 1967 - at a post-war high of 2.7 million - led to devaluation in the pound that year. due to overseas lack of confidence
what did wilson fail to achieve? part 2
trade unions - in place of strife 1967 by minister barbara castle. require unions to ballot before calling strikes. abandoned due to disdain from labour left and trade unions.
strikes caused major problems - seamen’s strike of 1966 damaged economy and led to devaluation
economic growth hampered by high costs resultant of union practices which caused overmanning in factories. trade union membership fell due to the decline of traditional manufacturing.
1970 election - the appeal of the conservatives
heath was also a grammar school educated leader. didn’t tolerate old racist ideas, sacked right wing Enoch Powell for his speech in shadow cabinet in 1968.
heath was passionate about joining the EEC - essential for Britain’s economic future in the wake of the diminishing importance of the commonwealth.
heath offered less govt economic intervention, fewer attempts to control wages.
trade unions - said labour had appeased over powerful unions, appealed to middle-class voters.
1970 - what was the key factor?
Labour had been bitterly divided over trade union policy. conservatives united to modernise labour relations. the liberal vote fell a bit, didn’t take away the vote like it did in the 60s. trade union issue gave conservatives a cause.
why the cons won the 1970 election
policy proposal
what were they?
developed a distinctive set of principles to underpin their policies
industrial laws would be reformed to reduce the number
of disruptive strikes and inflationary pay settlements
less state intervention in industry especially if enterprises were loss-making
would join the EEC
effect of the policy propsal?
by proposing that gov should do less to manage the economy, challenged some of the assumptions that had been accepted by both parties since seworld war cond
why the cons won the 1970 election
Edward health leadership
Heath brutally scrutinised Labour’s economic record, stressing that, since 1964, inflation had risen 33% and unemployment by over 200,000.
The press, almost unanimously, credited Conservative victory to Heath individually.
The Daily Express praised his, ‘guts and leadership’.
Heath also dealt firmly from with challenge from within his shadow cabinet, when he sacked Enoch Powell. Powell strongly opposed Labour’s race relations legislation and immigration from the commonwealth. The decision was widely supported by Tory MP’s
Heath’s economic failings (1970-74)
Inflation was at 5% (1970) - rose to 10% (1974)
Heath inherited a balance of payments surplus but left office in 1974 with a deficit.
Unemployment did not rise, however, the number of days lost to strike doubled under Heath’s government.
What was the post-war consensus
This is an understanding that after the Second World War there was a great deal of agreement between labour and the conservatives on the major issues.
