Labour And Conservtaive Govermetsn Flashcards
Why did the conservatives lose the election of 1964?
- more of a middle-class swing to the liberal party rather than a big win for labour
- the conservatives lost 1.6 million votes and the liberals gained over 1.5 million votes
impact of the loss of popularity of teh conservatives:
- sir Alec Douglas home seemed out of touch as he was a Scottish aristocract - the 14th earl of home and gave up his peerage to become PM, but at the same time many people found him more trustworthy worthy than Harold Wilson who had a reputation for being politically cunning. Home was 60 when he became PM and Wilson was 47.
- voters blamed them for growing economic problems, didnt have answers to problems like unemployment inflation
- the electorate felt they were old-fashioned and self- indulgent due to their sex scandals
- revival of the liberals: in middle class Orpington 1962, the conservative majority of 14,700 was overturned by the liberals with a majority of 7,850. Many middle class people were unhappy with the tories but were unwilling to vote labour. The liberals only contested 216 seats in 1959, in 1964 contested 365 seats. Although they gained only three more seats they had doubled their vote (1.6m in 1959 and 3.1m in 1964)
Labour Party benefitted from changes in society, the Labour Party benefitted, more popular with voters under 44 but lagged behind conservatives in older voters and women.
What problems did Wilson deal with?
divisions in the Labour Party?
- left of the party wanted to make Britain fully socialist by: bringing more sectors of the economy under state control, Abolishing or reforming institutions that appeared to protect privileges such as House of Lords and independent schools, remaining outside of the eec, abandoning the country’s nuclear weapons, speeding the process of decolonisation, distancing Britain from foreign policies
- the right of the party believed that these polciicies would lose votes, they wanted to promote economic growth and fairer distribution of. Wealth, apply to join the eec, retain Britains nuclear weapons, maintain a close alliance with the USA to guarantee national security, resist the demand for further nationalisation
Wilson avoided splits in the party
The small majority
- started off with a majority of only four
- general election of march 1966, Wilson achieved a majority of 96.
The common market
- Wilson believed he would be able to make de Gaulle change his mind on Britain joining the eec but failed, in 1967 de Gaulle repeated his veto. However party unity was maintained, he appeased the pro-Europeans by applying and appeased the anti-Europeans by not applying.
How did Wilson transform British society?
Roy Jenkins, Home Secretary
Nov 1965 temporary abolition of the death penalty, made permanent in 1969. 1967 contraception made available to all in the NHS, not just married couples, 1970 men and women paid equally
This was due to people travelling more and thus reducing the division between social classes, more education, higher standard of living, less respect for tradition, youth culture and civil rights movement in the us
Some people argued that increased availability of contraception would create a promiscuous and permissive society, opinion polls showed that the death penalty was popular and the campaign by Mary whitehouse against what she regarded as excessive sex and violence which gained over 400,000 supporters on the bbc
The Labour government tightened rules on immigration in 1965 and 1968, race relations act attempted to tackle discrimination but it was loosely enforced and therefore it was difficult to secure convictions. Immigration was popular for Labour voters living in the cities, there was fears that their jobs were under attack
Education policy
- 1965 Anthony crossland began replacing the system of students either attending grammar schools or modern secondary schools with new comprehensive schools for children of all abilities. However this led to controversy from those who regarded grammar schools as a good opportunity. The government carried on Alec Douglas homes work of enacting the robbins report which said that university eduction would require significant expansion in order to provide a sufficiently educated workforce
- the open university offered adults the chance to get a degree on a part time basis
Foreign and colonial issues
- the Vietnam war: Wilson believed that British economic recovery depended on close political alliance with America. The left of the party believed that US policies were aggressive and imperialist, although he gave president Johnson his support, he appeased teh left by not sending British troops. In June 1966 publicly criticised heavy us bombing of north Vietnam and in 1967 attempted to broker a peace deal. These actions irittated Johnson whilst not appeasing the labour left
Southern Rhodesia: labour left and African countries wanted wanted Britain to send troops to crush the rebellion. Instead the government imposed sanctions, but this clearly did not work.
- Wilson twice tried personal diplomacy and proposed a settlement in which Ian smith could remain in power and soon in the future would be replaced with a majority rule government.
Hoe did Wilson effectively manage his cabinet?
- wanted to avoid squabbles by giving ministerial jobs to senior party members with diffferent opinions
- achieved only 4 cabinet resignations
What were the problems that the labour government faced in 1964?
- the main problem was a balance of payments deficit of £800million inherited by the conservatives, believed that this could only be solved by Britain becoming more competitive: labour needed to: improve efficiency y investing in new technology and machinery, grant wage increases to more productive workers, use its revenue from taxation yo improve transport network, maintain investment in nationalised industries, ensure Britain well trained workforce.
It was argued trade union membership increased inflation because of wage increases not related to productivity. Trade unions had much control over government policy. In the 1960s almost half of the public belonged to a union and the Labour Party was allied with them traditionally.
How successfully did labour deal with the economic problems in 1964?
Wilson closed deflationary measures of devaluation because it would be very unpopular with the public and would create speculation about the American dollar which also had a deficit and create a run on the dollar
Deflationary measures:
Autumn 1964 jimmy callaghan negotiated a series of loans that would prevent a foreign run of the pound, and then over 9 months would introduce deflationary measures such as: higher taxes on tobacco and alcohol and a temporary import surcharge
However in order to maintain us financial support, Wilson had to agree to maintain British Far Eastern bases. British forces were fighting in Borneo to defend the commonwealth state of Malaysia against Indonesia, the Americans wanted to maintain British support in the region
The national plan:
Wilson thought that better economic planning would lead to British industry becoming more competitive. The department of economic affairs was created to modernise and improve Britains economy. The plan was published in sept 1965 and they set two targets:
- annual growth rate of 3.8% over 6 years
- an increase in exports of 5.25% each year to wipe out the balance of payments deficit
The national plan would require the government to:
- create a new national board for prices and incomes to ensure wage increases would only be granted if there was an increase in productivity
- provide investment funds for the modernisation of British industry and the improvement of British workers skill and a programme of regional development.
The national plan was not successful because:
- the treasury was the governments economics ministry and would not share the role with the DEA
- the recommendations of the National plan for government spending was undermined by the treasury’s deflationary measures to solve the immediate economic difficulties
- NBPI didn’t have the power to enforce economic decisions they would simply have to rely on the cooperation of the trade unions, who would not support a policy of wage restraint
After the general election in November 1967, labour had a substantial majority and decided to devalue the pound.
- May 1966 the seamen began a strike and demanded a pay rise that exceeded the governments guidelines, the strike damaged British exports and threatened another run on the pound.
- the strike ended in July and the government used deflation to deal with the deficit
- autumn 1967 unemployment was unusually high, risen to 2.5million from 1.7 million in 1964.
- 18th November, the pound was devalued to being worth $2.40, from $2.80.
- devaluation did not improve trade figures, the balance of payments deficit or cuts in spending, still required severe deflationary measures.
- in jan 1968 the government decided that British forces east of the suez excluded Hong Kong and the Persian gulf would be withdrawn by the end of 1971
- proscription charges had been abolished in 1964 were reintroduced.
- the increase of the school leaving age from 15 to 16 was deferred from 1971-1973
- in march 1968 budget Roy Jenkins introduced more deflationary measures such as taxation of £923 million. In 1969 finally the balance of payments showed a surplus, the value of steel increased and interest rates were reduced.
How successfully did the Labour government deal with industrial relations?
The power of the unions: the unions wer e traditional allies of the labour government and so it was difficult for Labour to bargain with them- they were responsible for most of the parties funding, block votes at Labour Party conferences could have influential impact on labour policy. Their economic power was also strong because the closed shop requiring workers to join a particular union enhanced bargaining power. Strikes in nationalised industries could cause disruption throughout the country
In place of strife:
April 1968 Barbara castle, leftist, became head of ministry of employment and productivity.
Proposals of in place of strife: employees would have legal right to join a union, government could order a ballot to be held before a strike if they believed there was serious threat to national interest, in an unofficial dispute the government could order a return to work for a 28-day cooling off period, disputes between unions could be referred to an industrial commission whose decision would be legally binding, financial penalties if the commission was not obeyed, workers who had been unfairly dismissed were entitled to compensation or could get their job back.
- Trade union congress disliked the act believed that introduction of legal sanctions was close to criminalising union action.
- more than 50 lab mps rebelled, resistance in the cabinet led by Callaghan made Wilson back down
- the TUC swore to monitor strikes and disputes and would offer opinion and advice
- failure of in place of strife convinced the public that unions had too much power and their resistance to change was an obstacle for economic progress.
- white collar jobs grew, for example insurance banking and finance 722k to 952k between 1961 to 1971. These industries discouraged union membership
- public sector union membership grew between 1960 to 1970 national union of teachers 225k 311k
Why did labour lose in 1970?
- Wilson’s complacency:
Wilson was confident and relaxed during the election campaign
Had a 51% approval rating in comparison to heaths 28%
Poor trade figures before election day disproved labours argument that the economy was recovering. - the disillusionment of labour supporters
Many labour supporters did not vote.
Party membership fell from 830k in 1964 to 680k in 1970, arguably because labour had become to right wing in foreign policy ( supporting the US, especially over Vietnam, too much spending on defence and not enough on welfare), had abandoned socialism and the working class esp w in place of strife - the failure of in place of strife
Suggested trade unions were selfishly determined to preserve their power and influence which was greater than the government
Some people saw this as the governments failure
Why did the conservatives win the election of 1970?
Conservative policy proposals:
+ industrial action to be reformed to reduce strikes and inflationary pay settlements
+ less state intervention, esp in loss making industries
+ Britain would apply to join eec
Heaths leadership
- heath attacked labours economic record RPI said that inflation had increased by 33% since 1964 and unemployment increased by over 200k
+ daily express praised his guts and leadership, the press attributed the win to heath
+ heath appeared strong in 1968 when he sacked Enoch Powell from the shadow cabinet. Powell had made a hate speech which predicted the race riots, majority of Tory MPs supported him
How successful was Heath as pm?
His aims:
+ strengthen economy, curb inflation
+ legislate to transform industrial relations
+ one nation: promising development and full employment
+ apply to eec
Economic record:
- inherited inflation rate of 5%, it reached 10% four years later
- level of unemployment remained the same until 1974 but the number of working days lost to strikes was double Wilson’s six year tenure amount
- inherited a BoP surplus but left a deficit
However there was a ‘world economic blizzard’
EEC:
Heath had a comfortable majority: 69 Labour MPs defied the party line and voted in favour, the Labour Party as a whole opposed terms of entry. 39 conservative MPs voted against
French PM Georges Pompidou was not against British entry but had certain demands: Britain would have to sacrifice any preferential trade deals with the commonwealth and accept the EECs policy of heavily subsidising French farmers
Industrial relations Act 1971;
+ aimed to balance the rights of individual workers with the unions and reduce the likelihood of strikes: workers could have the right to join or not join a union ( therefore challenging the legality of a closed shop), National industrial relations court and industrial relations commission was established, trade unions had to register with these to have improved rights of recognition with employers ( better protection against unfair dismissal), unions which would fail to register would be liable for claims for damages, the act gave the government the power to order a pre-strike ballot and impose a cooling off period of up to 60 days
Failure of the act: similar to in place of strife. TUC wanted to make it unworkable by telling members to de-register and defy NIRC. The act complicated heaths efforts to negotiate with the TUC over strikes.
A legal judgement in 1972 ordered dock workers who had refused to appear before the NIRC to be released the credibility of the act was undermined.
Industrial relations:
No of strikes: 1970: 10.9m, 1972: 23.9m, 1974: 14.7m
Inflation was severe leading to these strikes because
- Nixon ended the fixed exchange rate, devaluing teh dollar and making British goods more expensive
- 1972 the pound was able to float freely as its value was determined by money markets when the pound floated downwards imports became more expensive
- worldwide increase in commodity prices
- increased inflation by cutting taxes and increasing public spending in 1972 budget
What happened in the miners strike jan to feb 1972?
- wanted a 47% pay increase, this was above teh governments policy and the 8% the National coal board offered
- Jan 1872 280k coal miners came out on strike and the govt had to declare a state of emergency and there were power in the country
- by feb the government wanted a settlement and appointed a commission of inquiry, this gave them a large pay increase.
Why were the strikers successful?
- organised by Arthur scargill who coordinated flying pickets, strikers who convinced others to join in and prevented the movement of coal by road
- violent incidents. Staley coke depot 15k massed pickets prevented fuel from leaving the dept
- govt was poorly organised to deal with it and it happened in winter
Damaging for the government:
- encouraged other workers to strike
- added to inflationary pressure
- looked weak
- emphasised failure of industrial relations act
What was heaths u-turn?
Wanted to reduce state intervention but this didn’t last long.
- Jan 1971: aircraft division of rolls Royce faced bankruptcy and this lead to it being nationalised because of its importance to the defence industry
- Feb 1972 granted £35m to upper Clyde shipbuilders to safeguard 3000 jobs
- new ministry for industrial development set up in April to provide aid to industry in deprived regions of the country to stimulate growth
- had to introduce statutory policies in nov 1972 to regulate prices and pay increases which had some success
What was the oil price shock of 1973?
Oct 1973: Egypt and Syria went to war against Israel to recover lost land from war in 1967. Middle Eastern oil suppliers reduced supply and quadrupled prices
- Britain needed oil for 50% of its energy needs
- nov 1973 the miners began a ban in pursuit of a pay claim that was out of the governments budget. Negotiation talks got nowhere, strikers said the aim of the strike was to bring down the government
- 13th dec heath declared a state of emergency on tv and announced a three day week from 31st dec:
Electricity on provided to businesses on three specified days a week, a 50mph speed limit on all roads, TV required to close down at 10:30pm
Further talks failed and in Feb miners voted 81% in favour of strike action.
What happened in the 1974 election?
- minority government; the conservatives won 11.9m votes, 38% of the vote and 297 seats. Labour won 37% of the vote, 11.6m votes and 301 seats. Wilson had to hold another election, labour increased their majority by 18
Relations with trade unions?
The Labour Party and the tuc reached an agreement in 1973 called the social contract: the unions would agree to control wage increases. The government agreed to keep prices down and provide improved welfare benefits, a return to free collective bargaining over wages and no statutory incomes policy
Didn’t solve the economic difficulties because wage increases continued to exceed the einflation rate
It was felt that the government was just giving in to the union demands, according to an opinion poll, jack jones, leader of the transport workers union was the most powerful man in the country.
