Labour and Conservative Govts. 1964-79 Flashcards
- Labour victory 1964 - Wilson as leader 1964–1970 - economic problems and policies - relations with the Trade Unions - Labour party divisions - 1970 election - Heath as party leader and Prime Minister - aims and policies of Heath’s government - industrial relations & miners’ strike - Wilson and Callaghan 1974–1979, problems and policies 1974–1979
Reasons for Labour’s ‘64 election victory: Tory Weaknesses
- elitist leaders e.g Douglas Howe alienated the British public who viewed the party as increasingly out of touch, unprogressive and unwilling to modernise
- associated w and blamed for growing economic problems as they seemed unable to effectively deal with unemployment, inflation etc
Thereby tory weaknesses helped to undermine the opposition as the party’s image was damaged
Reasons for Labour’s ‘64 election victory: Labour Strengths
- progressive image countered everything the Tories weren’t, aligning labour with public opinion of the time
Therefore despite labour appearing as a stronger candidate for the election was more of a rejection of the tories.
Reasons for Labour’s ‘64 election victory: External reasons
- the revival of the Liberal party = could contest Tory seats as the party doubled their votes helping labour to secure a victory
The emergence of the liberals meant that tories had greater opposition so even if labour wasn’t highly voted for it could still steal tory seats.
Evidence of econ strengths under Labour
- an era of full employment and rising real wages
- inflation mostly benign
- House & car ownership increased
Evidence of econ weakness under Labour
- devaluing the pound = increased inflation
What elements of the UK’s economy were out of Labour’s control?
- Br. was left with enormous post ww2 debts worth approx. 200% of the GDP making it highly reliant on the US for financial aid
Define balance of payments
more spent on imports than exports = b.o.p is in deficit.
BOP is a key indicator of effectiveness of econ policy .
Deflation - successes
Deflation failures
Failures of Labour 1974 - 79: Industrial relations
- diplomatically inept & ignorant of Br. public’s plight
- exacerbated tensions which erupted in WOD - public thought
- unable to reach a resolution
However: merely a reaction to poor economic climate and the ‘straw that broke the camels back’
Economy
- highlighted inefficiency of Govt.
- inflation rose to 20%
- economic slump & unemployment at 1.3 million in ‘76
- £3.9 bil IMF loan saw £2 mil slashed from public spending
Ultimately the greatest failure - poor economic climate = soc & industrial tensions + political instability
What was the Social Contract?
an agreement between the govt. & trade unions that pay restraint would be conditional on the introduction of social reforms for union members
Political instability
- Lib-Lab pact in ‘74 - weak as reliant on other party to prop up govt. - had only won by a 3 seat majority - public alr lacked faith in govt.
- divisions between Left & Right (Benn & Foot) - these weren’t as polarising as the 50s