Labour dominance with a bit of Heath Flashcards
Why did labour win the 1964 election ?
HW leadership- Labour seemed much more united, divisions had not actually disappeared but HW had managed to gloss them over by presenting the Labour Party as modern, dynamic and progressive. Parties manifesto promised faster economic growth, full employment and improved welfare and health services.
View of Conservatives- many blamed them for growing economic problems, Tories seemed out of touch with modern democratic society as leader Home was already 60. Tories also had several sex scandals
How effective was Wilson as prime minister?
Wilson inherited a 4 seat majority but in 1966 he returned with a 96 seat majority, HW introduced several reforms which transformed British society eg Abortion act 1967, equal pay act 1970, sexual offences act 1967
Introduced comprehensive schools for children of all abilities.
Deteriorated relations with US due to refusing President Johnsons requests to send GB troops to Vietnam
How successful were the economic polices of the 1964-1970 Labour government ?
Inherited a BoP deficit of £800 million
Wilson ruled out devaluation because it would reduce savings of the affluent, had destroyed previous gov’s, didn’t want to have it used against him in future elections.
Callaghan, chancellor, negotiated foreign loans to prevent a run on the pound, over there next 9 months intro’d a series of deflationary measures which included higher taxes and an import surcharge.
National plan 1965- created by the DEA aimed for annual growth of 3.8% over 6 years and increase in exports of 5.25% each year. However plan never had much success due to lack of coalition between treasury and DEA.
Eventually Wilson had to devalue the pound in 1967, but posted relatively ineffective and several deflationary measures were still needed. Taxation was increased in 1968 by £923 million. By 1969 the BoP was finally in surplus, value of pound rose and interests rates were reduced
Was the economic record of Labour in 1964-1970 good or bad?
Rate of inflation had not been slowed and unemployment was higher in 1970 than in 1964. Britains relative decline also continued. Britain had highest defence expenditure than any other NATO country bar USA, which reduced investment in other economic sectors.
Labour did improve GB’s transport network and encouraged development of manufacturing sites. However sustained improvement in industrial activity was undermined by the Govs deflationary policies which Imposed cut backs on investment
How successfully did the Labour government deal with industrial relations ?
‘In place of strife’ written by Barbara Castle, proposed that employees would have legal right to join a union, gov could order a ballot before a strike if felt it was a serious threat to national interest, 28 day ‘cooling off’ period after strikes, workers who were unfairly dismissed could receive compensation.
TUC and left-wing were incensed by this as felt it labelled in industrial relations as a criminality. More than 50 Labour MP’s rebelled when debated
Did the 1970 election result owe more to Labour weaknesses or Conservative strengths ?
Wilsons complacency- Wilson believed his electorate skills were superior to Heaths and the opinions polls gave Wilson 51% compared to Heaths 28%. Publication of poor trade figures just before election day dented Labours claims
Many members of the Labour Party did not bother to vote, along with membership falling 150k between 1964-70
‘In place of strife’ played a huge part in the loss
Conservatives pushed for reforms of the industrial relations law, less state intervention, attempts to control priced and incomes by law would end and GB would again apply to EEC, Heath also relentlessly attacked the economic record of the Labour party
How successful was Edward Heath as prime minister?
Inherited an inflation rate of approximately 5% which had reached 10% 4 years later, Number of working days lost to strikes was double that of Wilson’s, Heath inherited a BoP surplus but left it a deficit.
Heath eventually gained membership of the EEC in January 1973- but terms were harsh on GB
Industrial relations act 1971- workers had legal right to join union, National industrial relations court and Industrial relations commission were established, unions were required to register with them, gov had power to order a pre-strike ballot and a 60 day cool of period. The act increased bitterness of confrontations between employers and unions- failed act
Miners strike 1972- miners demanded a 47% pay rise which was well above the Govs wage policy, strikes led to the order of a national state of emergency, eventually the gov gave in as the commission of inquiry gave the miners a large pay increase.
Heaths U-turn
Oil price shock and 3 day week 1973
How effectively did Wilson and Callaghan deal with the problems faced between 1974-1979
Relations with the trade unions- social contract introduced in which unions agreed to try and cooperate in controlling wage increases, gov promised to try and keep down prices and a return to free collective bargaining over wages.- failed as wages increased due to inflation, however demonstrated shared objectives.
Labour Party was drifting to the left
Renegotiated terms of EEC to reduce GB’s contribution
Wilson resigned in 1976
Stagflation- inflation reached nearly 30% by mid 1975, Econ growth slumped and unemployment steadily increased from 542k to 1.3 million 2 years later, Healey increased taxes and cut gov spending to take money out of economy, set a £6 per week ceiling on wage increases which as later reduced to £4 a week.
IMF loan 1976- Healey realised he could only save there falling value of the pound by asking the IMF for a £3900 million loan but had to cut gov spending by £2 billion to gain it.
Lib-lab pact 1977-78- positive
Winter of discontent- extremely negative and led to the end of labour
