Labour and Conservative governments 1964–1979

Question 1

Who were the PM’s from 1964-79

Answer 1

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

Question 2

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

Answer 2

• Wilson defeated the Conservatives, led by Douglas-Home, with a majority of 4 seats.
• Presented Labour as united, despite ongoing divisions over nuclear policy, the NHS, Europe, and nationalism,
• Promised policies aimed at boosting economic growth, achieving full employment, and improving welfare and education.
• Wilson portrayed as “a man of the people,” highlighting his Yorkshire roots, grammar school education, and passion for football.

Question 3

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

Answer 3

• Tories in power since 1951.
• ‘thirteen wasted years’, due to many economic difficulties the Conservatives failed to address.
• Also, 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). The electorate had the impression that the Tories were old fashioned, self-indulgent elites.

Question 4

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

Answer 4

• The weakness of the Conservatives in the early 1960’s saw many middle-class voters turn to the Liberals in protest.
• The 1962 by-election in Orpington highlights this point, where a Conservatives majority of 14,000 was overturned and the Liberals gained a majority of 7000.
• By taking votes away from the Conservatives, the Liberals handed votes to Labour.

Question 5

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

Answer 5

• Young people in Britain began challenging traditional authority, influenced by the rise of satire mocking politicians.
• Class distinctions became less significant, with grammar schools enabling underprivileged children to attend university.
• This created a desire, especially among young people, for a modern, classless Britain.
• These societal changes benefitted Labour, which was more popular with younger voters.

Question 6

Why was the result so close? (1964 election)

Answer 6

Douglas-Home’s leadership:

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

Conservative tax cuts:

• Chancellor Reginald Maudling’s 1963 budget cut taxes, boosting wages and reducing unemployment from 900,000 to 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, especially in times of crisis, while Conservatives were trusted more on defence.
• Immigration was a divisive issue

Question 7

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

Answer 7

• 1965: abolition of the death penalty
• 1965 and 1968: Race Relations Acts - discrimination in public facilities, housing and employment was made illegal.
• 1965: Expansion of universities led to 250,000 students in 1969 (compared to 130,000 in 1963), this includes the open university, which Wilson stated as his greatest achievement.
• 1967: Sexual offences - homosexual acts in private were made legal
• 1969: voting age lowered to 18
• 1970: equal pay for men and women

Question 8

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

Answer 8

• 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.

Question 9

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

Answer 9

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.

Question 10

Economic problems (Wilson’s government 1964-70)

Answer 10

• Inherited an £800 million balance of payments deficit, caused by Britain’s slower post-WW2 economic growth compared to other countries.
• Unions demanded higher wages and threatened strikes during inflationary periods.
• High labour costs made British goods expensive and less competitive globally.
• Limited investment in research, design, and industrial expansion due to high labour costs.
• Labour’s alliance and funding by trade unions made it difficult to oppose them.
• By 1960, nearly half of the workforce was unionized.
  Jack Jones, leader of the TUC, was regarded as highly influential, even considered the most powerful man in Britain during Wilson’s tenure.

Question 11

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

Answer 11

Wilson created the DEA (Department of Economic Affairs), which set two targets:
- Annual growth rate of 3.8%
- Increase in exports of 5.25%
Annual growth rate had been just 1.6% in the post war years so a jump to 3.8% was very ambitious and unrealistic.

The national plan did not work because:
- The treasury did not co-operate with the DEA and guarded its role as the government’s economic ministry.

Question 12

Wilson - Devaluation (1967)

Answer 12

• There was no other way out of the economic difficulties
• Striking seamen in May 1966 over wages that exceeded the governments pay guidelines damaged British exports and threatened another run on the pound
• Unemployment hit 2.5 million (Autumn 1967)
• On the 18th November 1967, the pound was devalued from $2.80 to $2.40

Question 13

Impact of Devaluation (1967)

Answer 13

• Balance of payments did not improve and deflation was also needed to cure the crisis.
• In January 1968, it was announced that all British troops east of Hong Kong were to be removed as they could not afford to keep them there anymore.
• Prescription charges (abolished in 1964) were reintroduced, as a way of raising revenue for the government.
• 1968 budget - Roy Jenkins increased taxation by £923 million and there seemed to be a steadying of the economy with a balance of payments surplus and increase in the value of sterling

Question 14

Economic record of Wilson’s Government

Answer 14

Unemployment was higher in 1970 than in 1964. This was obviously something Labour didn’t address.

• Rate of inflation had not slowed at all.
• Heavy investment in NATO, research and design into the military
• Built new motorways in the north of England
• However, sustained improvement was scuppered by deflationary policies.
• Wilson’s economic policies were not successful, however things out of his control such as Vietnam war damaged economies, including USA, which damaged Britain’s economy.

Question 15

‘In Place of Strife’ - January 1969

Answer 15

Wilson was receiving criticism following his failure to deal with the unions. He asked Barbara Castle (Ministry of Employment and Productivity) to reform industrial relations.

• Employees have a legal right to join or not to join a union
• The government could order a ballot of members if there was a serious threat to national interest
• In an unofficial dispute, the government could call a 28 day ‘cooling-off’ period where workers would return to work (allowed 4 weeks to negotiate)
• Disputes between unions would be referred to an industrial commission where the decision would be legally binding.

Question 16

Why Labour lost the 1970 general election - WILSON’S COMPLACENCY

Answer 16

An opinion poll just before the election showed that Wilson had a 51% approval rating, compared to Heath’s 28%.

Wilson exuded confidence throughout the election campaign, believing his electioneering skills were superior to Heath.

Wilson was perhaps too relaxed, and the publication of some poor trade figures just before election day dented claims that the economy was on the mend.

Question 17

FAILURE OF IN PLACE OF STRIFE

Answer 17

• Many who had voted Labour in 1964 and 1966 had been impressed by their promise to modernise Britain.
• The failure of ‘In Place of Strife’ suggested that unions were determined to maintain their own power and were more powerful than the government.
  For many voters, this was a sign of the government’s failure to improve the economy.

Question 18

Why Labour lost the 1970 general election - The Disillusionment of the Labour supporters

Answer 18

• Richard Crossman though that Labour were defeated in 1970 because its supporters didn’t bother to vote.
• Membership of the Labour party fell between 1964-70, meaning there were fewer local activists to campaign for Labour.
• Many Labour supporters felt the government under Wilson had been too right-wing, For example, they believed: - Britain’s foreign policy had been too supportive of the USA, especially over Vietnam
• Too much had been spent on defence, not enough on education and welfare
• The working class had bene made poorer by Wilson’s policies
• Many young voters turned on Labour and would often protest against Vietnam.

Question 19

Why Conservatives won the 1970 election - Conservative policy proposals

Answer 19

The Conservatives had used their years in opposition to develop a distinct set of principles to underpin their policies. The main ideas were:

• Britain would attempt to join the EEC
• Less state intervention in industry, especially if industries were loss-making
• Industrial relations law would be reformed to reduce number of disruptive strikes

Question 20

Why Conservatives won the 1970 election - Heath’s Leadership

Answer 20

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

Question 21

Heath’s economic failings (1970-74)

Answer 21

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.

Question 22

Heath’s government - Europe

Answer 22

• Became a full member of EEC on 1st January 1973 after De Gaulle’s departure in 1969 and President Pompidou’s support.

Both parties were divided; 39 Conservative MPs opposed joining, while 69 Labour MPs defied their party’s policy and voted in favor, securing Heath a comfortable majority.

Pompidou ensured Britain entered on French terms, requiring the sacrifice of Commonwealth trade deals and acceptance of EEC policies

Membership had little immediate effect on Britain’s economy and the relationship with Europe remained contentious.

Question 23

Heath’s - Industrial Relations Act (August 1971)

Answer 23

The aim of the IR Act 1971 was to balance the rights of workers with those of unions, whilst reducing the likelihood of strikes. The provisions were:

• Workers had the right to either join or not join a union.
• The government could order a pre-strike ballot and a 60 day ‘cooling off’ period.
• NIRC (National Industrial Relations Court) established.
• Trade Unions had to register with the NIRC. Those who did would have improved rights of recognition by employers.

Question 24

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

Answer 24

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

Question 25

Impact of the Industrial Relations Act (1971)

Answer 25

Unpopular with most unions and increased tension. Many union leaders became militant in the early 1970’s and wanted to see the Act scrapped and Heath’s government to fall.

Heath’s Act also led to great unrest and inflation, with workers seeking wage increases to prevent a fall in living standards.

Days lost to industrial action increased…
- 11 million (1970)
- 24 million (1972),
Highlights how unpopular the Act was.

However, this number lowered to 7.2 million in 1973.

Question 26

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

Answer 26

• Miners had been skilfully organised, especially miners in Yorkshire, organised by Arthur Scargill, who co-ordinated flying pickets.
• There were violent incidents. However, these confrontations did not damage public sympathy for miners
• The government was poorly organised to cope with the strike and the severe winter weather meant it had an immediate impact on the countries power supplies.

Question 27

Miner’s Strike (January-February 1972) - The strike was damaging for the government because…

Answer 27

• Encouraged other workers to strike for pay increases
• The strike emphasised the weakness and failure of the 1971 Industrial Relations Act
• The government appeared weak in the face of determined union hostility

Question 28

Heaths U-Turn

Answer 28

• January 1971 - the aircraft division of Rolls-Royce, facing bankruptcy, was nationalised as it was regarded as vital to Britain’s defence industry.

Heath was not prepared to allow unemployment to increase as the price for reducing government expenditure and this explains his ‘U-turn’ of policy:

• 1972 - A new ministry for Industrial development was established to provide aid to industry in deprived areas of the country.

Question 29

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

Answer 29

Oil crisis impact: Middle Eastern oil producers quadrupled prices and limited supplies, significantly affecting Britain, which relied on oil for 50% of its energy.
Miners’ actions:

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.
Government response:

December 1973: Heath declared a national emergency and introduced a three-day working week.
1974 election:

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

Question 30

Relations with trade unions (Wilson/Callaghan)

Answer 30

in 1973, when Labour were out of office, an agreement was made with the TUC called the Social Contract:

Unions agreed to co-operate in trying to control wage increases. In return, the government promised to try to keep down prices and provide improved welfare benefits.

However, the Social Contract did not solve the nation’s economic difficulties because wage increases continued to exceed inflation.
The peace between Labour and unions only lasted until 1978-79

Question 31

Economic problems (1976-79, Callaghan)

Answer 31

• Inflation hit 30% by mid 1975 - Trade Unions demanded higher wages, inflation worse.
• In 1975 World Recession hit British exports which led to an economic slump and unemployment rising from around 500,000 (1974) - 1.2 million (1976)

Question 31

what were the Divisions over Europe (Wilson - 1975

Answer 31

Wilson renegotiated Britain’s terms with the EEC and held a referendum in 1975 to decide whether to except the new terms.

Wilson allowed his Cabinet ministers freedom to campaign for either side. The result was a 2:1 return in favour of remaining a member of the EEC.

Voters believed that remaining in the EEC was the best way for Britain to deal with its economic difficulties, it also buried the issue of Europe and appeared to preserve Labour party unity.

Question 32

IMF Loan (1976) - Callaghan

Answer 32

• Healey (Chancellor of the Exchequer) decided the only way to sure up the value of the pound was through a $3900 million loan from the IMF
• However, to receive the loan, the government would have to cut back on spending by £2 billion
• Callaghan managed to persuade his Cabinet that it was the only option but it caused further splits in the Labour party, however Callaghan prevented a severe economic crisis becoming a political one.

Question 33

Lib-Lab Pact 1977-78:

Answer 33

• The severity of Britain’s economic difficulties, undermined public confidence in the government
• November 1976 - Tories had a 25% lead over Labour and by-election losses meant Labour’s small majority had disappeared
• In March 1977, Callaghan negotiated a deal with David Steel (Liberal Leader) by which 13 Liberal MP’s agreed to support the government.

Question 34

The Winter of Discontent (1978-79):

Answer 34

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.
Social and political crisis:

Strikes led to rubbish piling up in the streets, creating societal chaos.
The press, often critical of Labour, sensationalized the events, highlighting the country’s decline.
Labour’s response:

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