Labour and Conservative governments 1964–1979 Flashcards

1
Q

Who were the PM’s from 1964-79

A

Labour - Harold Wilson - 1964-70
Conservative - Ted Heath - 1970-74
Labour - Harold Wilson - 1974-76
Labour - James Callaghan - 1976-79

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2
Q

Reasons for Labour victory in 1964 election? - Wilson’s leadership

A
  • Wilson defeated the Conservatives majority 4 seats
  • Presented Labour as united despite divided over issues e.g nuclear and europe
  • Good policies: economic growth, full employment, improving welfare and education.
  • Wilson “a man of the people,” showing his Yorkshire roots, grammar school education compared to aristocrat Alec douglas holmes
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3
Q

Reasons for Labour victory in 1964 election? - How the electorate regarded the Tories

A
  • Tories in power since 1951.
  • ‘thirteen wasted years’, due to many economic difficulties
  • 60-year-old Douglas-Home was no match for a younger Harold Wilson.
  • The Tories had also been caught up in a number of scandals (Profumo, Philby, Argyll).
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4
Q

Reasons for Labour victory in 1964 election? - Revival of the Liberals

A
  • Conservative weakness had middle-class go to liberals
  • E.g. The 1962 by-election in Orpington Conservatives majority of 14,000 went and Liberals gained a majority of 7000.
  • By taking votes away from the Conservatives, the Liberals handed votes to Labour.
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5
Q

Reasons for Labour victory in 1964 election? - Changes in British society in the 1950s

A
  • Young people challenging traditional authority
  • Class distinctions became less significant
  • This created a desire, especially among young people, for a modern, classless Britain.
  • benefitted Labour, which was more popular with younger voters.
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6
Q

Why was the result so close? (1964 election)

A

Douglas-Home’s leadership:

  • an effective Prime Minister, seen as honest, decent, and trustworthy.
  • Contrasted with Wilson, who had a reputation for being politically cunning.

Conservative tax cuts:

  • 1963 budget cut taxes: high wages, lower unemployment 900,000 - 300,000 by 1964.
  • Helped narrow Labour’s lead in opinion polls.
    Attitudes to Labour:
  • Distrust of Labour’s ties to trade unions and unresolved internal divisions persisted.
  • Labour leaders were seen as inexperienced.
  • Immigration was a divisive issue
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7
Q

Social achievements of Wilson’s Government (1964-70)

A
  • 1965: Expansion of universities led to 250,000 students in 1969 (compared to 130,000 in 1963)
  • 1969: voting age lowered to 18
  • 1970: equal pay for men and women
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8
Q

Foreign and Colonial issues (Wilson’s Government) - Vietnam (1956-74)

A
  • Vietnam War (1956-74):
  • Wilson didn’t send troops to support the USA (1966)
  • Good: It united the Labour party
  • Bad: Alienated Wilson from the US and its president Lyndon Johnson.
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9
Q

Foreign and Colonial issues (Wilson’s Government) - Attempts to join the EEC (1967)

A
  • Attempts to join the EEC 1967, de Gaulle 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.
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10
Q

Economic problems (Wilson’s government 1964-70)

A
  • Inherited an £800 million deficit
  • inflation from 4% (1964) to 6-9% late 60s
  • unemployment from 1.6% to 2.5%
  • failure of in place of strife
    .
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11
Q

Wilson’s economic policies - National Plan (September 1965)

A
  • Wilson created the DEA
  • Targets:
  • Annual growth rate of 3.8%
  • Increase in exports of 5.25%
  • very ambitious plan
  • The national plan did not work because:
  • The treasury did not co-operate with the DEA
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12
Q

Wilson - Devaluation (1967)

A
  • Importing more than exporting - payment deficit
  • Striking seamen in May 1966 over wages that exceeded the governments pay guidelines - economic disruption
  • Unemployment hit 2.5 million (Autumn 1967)
  • On the 18th November 1967, the pound was devalued from $2.80 to $2.40
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13
Q

Impact of Devaluation (1967)

A
  • increased exports, British goods cheaper
  • high inflation, cost of goods rose
  • Wilson reputation got worse, previously denied
  • 1968 budget - Roy Jenkins increased taxation by £923 million, unpopular
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14
Q

Economic record of Wilson’s Government 1964 to 1970 (positives & negatives)

A

Positive:
- introduced national plan to grow economy
- payment decific reduced by 500 million due to Roy Jenkins

Bad:
- Devaluation of the pound
- Strikes e.g. Seamen
- National plan abandoned due to failure
- higher inflation
- higher unemployment

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15
Q

what was ‘In Place of Strife’ - January 1969

A
  • Barbara Castle (Ministry of Employment and Productivity)
  • Strike ballots
  • Employees have a legal right to join or not to join a union
  • In an unofficial dispute, the government could call a 28 day ‘cooling-off’ period where workers would return to work
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16
Q

Why did in place of strife fail?

A
  • the trade unions saw the 28 day cooling off period as an attack
  • Many Labour Mps disliked
  • proposal dropped in 1970
17
Q

Why Labour lost the 1970 general election - Labour weakness

A
  • Wilson overconfident: had a 51% approval rating, compared to Heath’s 28%.
  • Membership of the Labour party fell between 1964-70
  • Voters felt Labour acted too right wing
  • Failure to improve industrial relations e.g. in place of strife
18
Q

Why Conservatives won the 1970 election - Conservative strengths

A
  • Heath scrutinised labour economics:1964, inflation had risen 33% and unemployment by over 200,000.
  • the press praised him: 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 (racist)
  • Good policies: Britain would attempt to join the EEC
  • improve industrial relations
  • less intervention in industry
19
Q

Heath’s economic failings (1970-74)

A
  • Inflation was at 5% - rose to 10%
  • Heath inherited a balance of payments surplus, but left office in 1974 with a deficit.
  • high unemployment, over 1 million for first time since 30’s
  • strikes e.g. three day week miners strike
  • IRA introduced but failed
20
Q

Heath’s government - Europe

A
  • Became a full member of EEC on 1st January 1973 after De Gaulle’s departure in 1969
  • 39 Conservative MPs opposed joining, while 69 Labour MPs defied their party’s policy and voted in favour
  • Britain entered on French terms, sacrifice of Commonwealth trade deals and acceptance of EEC policies
  • little effect on Britain
21
Q

Heath’s - Industrial Relations Act (August 1971)

A
  • created to stomp TU power
  • created Industrial relations court to oversee disputes
  • TU had be registered with gov
  • Before action TU had to do a ballot and inform employer
22
Q

Impact of the Industrial Relations Act (1971)

A
  • many TU refused
  • disliked by public
  • 11 million before (1970)
  • 24 million after (1972),
  • However, this number lowered to 7.2 million in 1973.
  • repealed in 1974
23
Q

Miner’s Strike (January-February 1972) - ORIGINS

A
  • Requests for a 47% pay increase was well over the governments wage policy
  • Therefore, in January 1972, 280,000 coal miners went on strike
  • government forced to call a state of emergency, with regular power cuts throughout the country.
24
Q

Miner’s Strike (January-February 1972) - Strike was a success for TU because

A
  • Miners had been skilfully organised, especially miners in Yorkshire, organised by Arthur Scargill
  • Edward Heath forced to negotiate, seen as weak
  • The strike emphasised the weakness and failure of the 1971 Industrial Relations Act
25
Q

Heaths U-Turn 1972 reasons

A

-heath originally wanted a limited amount of state intervention

  • he faced siginifcant pressures including unemployment over 1 million
  • failure to control inflation
  • loss of confidence
26
Q

heaths U turn consequences

A
  • Short-term improvement in industrial relations
  • Heath seen as weak
  • more internal divisions
27
Q

(Heath) Oil price shock of 1973, and the three-day week

A
  • Middle Eastern oil producers quadrupled prices
  • Britain, which relied on oil for 50% of its energy.
  • November 1973: Miners began an overtime ban, demanding higher wages beyond the government’s limits, aiming to weaken the Conservative government.
  • February 1974: 81% of miners voted for strike action.
  • December 1973: Heath declared a national emergency and introduced a three-day working week.

Heath called an election to determine “Who Governs Britain?”
March 1974: Wilson became PM again, with Labour winning 301 seats to the Conservatives’ 297.

28
Q

Result of Three day week

A
  • Heath called an election to determine “Who Governs Britain?”
  • March 1974: Wilson became PM again, with Labour winning 301 seats to the Conservatives’ 297.
29
Q

Relations with trade unions (Wilson/Callaghan)

A
  • 1973, Labour out of office, made an agreement with the TUC called the Social Contract:
  • Unions agreed to be reasonable with wages
  • In return, government control prices and provide welfare
  • But social contract failed, high inflation
  • The peace only lasted until 1978-79
30
Q

Economic problems (1976-79, Callaghan)

A
  • Inflation hit 30% by mid 1975
  • TU want higher wages
  • In 1975 World Recession unemployment rising from around 500,000 - 1.2 million
31
Q

what were the Divisions over Europe (Wilson - 1975

A
  • Wilson renegotiated Britain’s terms with the EEC and held a referendum in 1975 to decide whether to except the new terms.
  • divisions within the party e.g Roy Jenkins and Callaghan pro, Michael foot against
  • TU against EEC, worried about rights
  • Wilson avoided party split by having referendum
32
Q

IMF Loan (1976) - Callaghan

A
  • Healey (Chancellor of the Exchequer) decided only way to help the pound was 3.9 billion loan from the IMF
  • However, to receive the loan, the government would have to cut back on spending by £2 billion
  • loan was humiliating for Britain
  • caused divisions with Labour party
  • stabalised economy but angered public
33
Q

Lib-Lab Pact 1977-78:

A
  • Labour lost majority after by-elections in 1976
  • The liberals, 13 MPs, held some influence in hung parliament
  • Labour and liberals made agreement that liberals would support labour in return for consultion on key policy
34
Q

The Winter of Discontent (1978-79):

A

Inflation control and union resistance:

Government relied on unions agreeing to pay rises capped at 5%, but unions opposed this, accusing Chancellor Healey of abandoning the Social Contract.

Major strikes:

1978: Ford workers secured a 15% pay increase after a 3-month strike.
1979: Lorry drivers demanded a 30% pay increase, sparking further strikes.

Labour’s response:

Strikes were resolved through pay agreements, reinforcing the perception that the Labour government was weak in handling unions.