Labour and conservative governments 1964-1979 Flashcards
Conservatives weakness 1964E
Profumo affair, didn’t have the answers for various problems, out of touch with society and older voters.
Important because the crumbling and instability of the Conservative Party couldn’t keep up to date with a new progressive society. The economy fluctuated but it mostly suffered under leadership.
Labour strengths 1964E
United, policies appealed to the public, no class stigma, voters were younger, modern and kept up to date with the Uk”s evolution.
This is important because labour’s progressive motives appealed to the new changing society. They promised to overcome the economic challenges the conservatives couldn’t resolve.
External reasons 1964E
Liberal party took votes from the conservatives and society was changing.
This is important because the revival of the liberal party took away votes from the conservatives, shifting conservative votes increases chances of a labour majority.
Harold as PM- Parliamentary majority
The govt later in his term had a majority of 95.
Only won by a small majority in ‘64 election- 4 seats!!
Harold as a PM- Cabinet management
Political skill in avoiding party divisions, foreign policy.
Bitter quarrells about policy and conflicts between personalities.
Harold as PM- Labour Party unity
They won the 1964 election under Wilson.
Voters blamed the tories for the failure of the UK.
Harold as PM- Social reform
Issued a series of reforms, increase in prosperity meant people had more spending power. Better education and employment rate.
The left and right often argued.
Harold as PM- Foreign and colonial issues
Managed to hold a balance and less radical labour supporters in his social reform.
Left were bitter over Wilson’s attitude to the Vietnam War,as he refused to send troops.
Wilson failed to convince De Gaulle to join the EEC.
Evidence of economic strength under the 64-70 govt
Increased purchasing power.
House and car ownership increased.
Increased employment and real wages.
Evidence of economic weakness under the 64-70 govt
Performed poorly in comparison to our competitors.
Strikes.
Lack of public infrastructure.
Wanted to buy British made products only.
Shortages in industries.
Inflation.
Devaluation of the £.
Elements beyond the 64-70 govt control
Reforms blocked by the unions.
Post- war state of the UK compared to others.
Debt.
Balance of trade deficit.
Shortages in industry.
The economic issues England faced 64-70 and govt intervention
Balance of payment deficit of £800m inherited from the conservatives- solved by producing goods that were better/ cheaper than foreign goods.
Increased efficiency by modernising industry.
Use taxes to develop/ improve infrastructure.
Maintain investment in national industries.
Ensure Britain had a well- trained work force.
Nationalised industry
Under government control, coal mining, civil, aviation, telecommunications, transport, electricity, gas and water.
Hoped to stimulate competition between firms.
The investment was subject to government expenditure cuts and increased the power of the unions.
Balance of payments
Payment deficit- more spent on imports than exports.
Indication of the effectiveness of the economy.
Foreign holders needed to have confidence in Britains economic strength.
If the value fell, foreign holders wouldn’t want to buy.
Tax cuts risked a balance of payment deficit because of increased purchasing power.
Devaluation definition
Reducing the exchange rate of the £.
Foreigners would get more pounds in exchange for their currency because British exports would be cheaper.
Imports would become more expensive which could wipe out the balance of payment deficit debt.
Britains international prestige- damaged.
Rise in import prices would contribute to inflation.
Deflation
1964
Seemed to be no other way out of economic difficulties.
Sea worker strike damaged Uk exports.
Unemployment increased.
Never prevented spending cuts.
National Plan
1965
Make British industry more competitive, modernise and improve Britains economy.
Contributed to their victory in 1966. Reduced the balance of payment deficit, prevented a toll on the pound.
Govt struggling to impose wage restraints, DEA and treasury were carrying out contradictory policies.
Devaluation scheme
1967
Devaluation would damage labour’s rep and it proved to be ineffective because of the gap between imports and exports.
The Us wanted to maintain British support.
Higher taxes on tobacco and alcohol.
Import surcharge.
Wilson took a realistic view of the need to reform the unions.
Wage and salary increases must be kept in check because inflation and the balance of payment deficit were threats.
1961- ‘In place of strife’- aimed to prevent future strikes. Wilson divided over the issue.
Wilson’s policy as regards to the unions were a failure
‘ In place of Strife’ caused divisons also people thought it undermined Labour’s principles.
Risk of alienating the trade unions.
Failure to tame the unions.
60 Labour MPs rebelled when INPOFS was debated in the House of Commons. resistance within the party caused Wilson to back down.
Social contract 1973- trade unions agreed to voluntary wage restraint for govt measures like increased social spending- failed b/c of rising unemployment, external crises HOWEVER worked until 1977.
Elements were beyond Wilson’s control
Union strikes.
Economic difficulties divided the unions and the governments.
The unions donated the most money to labour.
Trade union had a lot of economic power as a result.
Trade unions resistance to change. Traditional industries declined.
Changes to union membership.
Govt decisions making them unpopular with the electorate
Divisions about joining the EEC in parliament.
The ‘industrial relations Act’ 1971 increased confrontations between employers and employees- unions wanted to bring down the Heath government.
Prices rose not wages.
Refusal to increase the miners wages- strike.
Govt poorly organised to cope with the strike shows weakness, 3 day working week.
Why did these reasons make them unpopular?
The govt had not solved the prior economic issues, these were exacerbated by the new troubles. Attempts to negotiate with the unions had proved ineffective because strikes continued even under Labour’s govt.
Factors beyond Heath’s control
Inherited a fragile economy from labour.
Increased inflation rate of 5% per annum.
Oil price shock of 1973.
Union organised strikes, the miners strike showed that the govt was weak.
