Labour Givwnrmant Of Wilson And Callaghan Flashcards
What happened in the 1974 election?
-Wilson won a majority (was only 3)
Labor gained 18 seats
Conservatives lost 21 seats
How did Wilson deal with industrial relations following his (1974) election win?
Wilson had pre- negotiated a ‘social contract’ with the trade union congress-
reaching an agreement with the national union of miners = ending 3 day working work
Denis healey, chancellor issued budgets to deal with economic crisis & not annoy unions (July:reduced VAT, increase food subsidies, March: tax increases)
What economic reforms did Wilsons government do in (1974-76)?
(1975) Healy budget impose steep rise in tax & cutting public spending
(1974) nation’s enterprise board established: this
-administered governmant shareholdings on private companies (are able to give financial aid)
-Aims were to increase investment
-(1975) Formal pay restraints
What were the limitations of the economic reforms (1974-1976)
• nationalsing british leyland. A failing car manufacturer created controversy
• social contract not limited to wage demands
-(1975) formal pay restraint:: had intensified party division as left wingers did not want to put too much pressure on the unions
What was economic developments like in Callaghan’s premiership (1976-79)
Failure:
-(1976) in government , Denis Healy receive £3 billion loan from International Monetary Fund
Which lead to spending cuts
(So Britain economy looked weak) BALANCE: Callaghan handled well = economy recovery
Success
-North Sea oil increase finance
-(1978) nine oil fields in production
- inflation had fell to 10% -unemployment also fell
What did Callaghan do to strengthen government in (1977)?
Made the lib lab pact
What was the lib lab pact?
Meant that 12 liberal mps could vote within government = defeat Conservative Party vote of no confidence
Callaghan promises to plan to deal with devolution in wales and Scotland
What is devolution?
Transfer of power to lower levels of giovernmant
How was devolution dealt with in Scotland and wales following the lib lab pact?
The devolution acts were passed in (1978) and a referendum followed which resulted in narrowly enough people saying yes for Scotland and a large majority saying no in Wales
So resulting in it failing as there wasn’t an simple majority
So the Scottish nationalist mos withdrew supports from the labor party
What started the winter of discontent?
Trade union congress reject 5% wage increase limitation proposed by labor government
Meant trade unions demanded more
What had occurred in the winter of discontent?
Lorry drivers went on strike in winter (1978) =[15% wage increase]
-disruption to transport (lorry drivers)
-strikes by public sector workers (grave diggers, clerical staff and dustmen)
What were the consequences of the winter of discontent?
Trade unions achieved average pay increase of 10% in (1979) march
Had big psychological impact
What had started the (1979) election?
() government lost vote of no confidence in parliament on the Scottish devolution issue as Scottish nationalist voted against government
(Gov lost 311 votes to 310)
What were the results of 1979 general election?
Conservatives won 329 seats
Labor win 269 seats
Conservatives win 43.9% of votes
Labor won 36.9% of votes
Conservatives were able to gain lots of support from the winter of discontent and drop in support for liberal Scottish national party
What was the consequences of the sunning-dale agreement for the Labour government
The ulster workers council was established by shipyard workers to bring down the power sharing executive
So the shipyard workers went on strike in (1974)