Labour Government (1974-1979) Flashcards
Why did Wilson call another election in October after the February election?
Labour only gained 4 more seats that the Conservative Party in February election
42 more seats gained in October election
What did the TUC and Labour create in 1973 to prove that the industrial relations act was unnecessary?
The Social Contract
What did the social contract consist of?
• Government promised to try to keep prices down
• Provided improved welfare benefits
• Returned to free collective bargaining over wages
How did the social contract fail?
“the government gave and the unions took”
• Wage increases continued
• Jack Jones (leader of the transport workers union) now regarded as the most powerful man in the country
How did the government settle a miners strike in 1974?
• 29% pay increase
-wages growing faster than economic growth
How much had inflation increased by 1975?
30%
What effect did the world recession on British exports have on unemployment?
542,000 unemployed in 1974 to 1.3 million in 1976
What did Healy’s 1975 budget do?
• Increased taxes
• cut government spending
• £6 ceiling on wage increases (TUC agreed in July 1975)
What was the wage ceiling on wage increases reduced to in 1976?
£4
How much did wage increases fall from 1975 to 1977?
1975 26%
1976 15%
1977 10%
What was the BOP deficit in 1977?
1 million deficit
How much did Britain borrow from the IMF loan in September 1976?
$3900 million
What did Britain have to do to secure the IMF loan?
Cut government spending by £2 billion
Why did Callaghan create the Lib-Lab pact in 1977?
Gallup opinion poll gave tories a 25% lead over Labour
By-election losses meant that Labour majority in the House of Commons disappeared
13 liberal MPs agreed to support the Labour government
When did Wilson resign and who took over?
1976
Callaghan
Which two cabinet appointments showed the drift to the left in the Labour Party? Why is this significant?
- Michael foot appointed to the department of education
- Tony Benn appointed as Secretary of State for industry
- Many believed that 1964 Labour was too right-wing, shows a change in leadership
What was the vote in favour of continued membership in the EEC? Why was this significant?
2:1 in favour of
Showed how labour was becoming more united as a party
What % did unions agree to not issue pay rise more than? Why did the unions abandon this?
5%
Believed that Healy had abandoned the social contract
How much did Ford workers demand in pay increase during the December 1978 strike?
15%
How much of a pay increase the lorry drivers demand in the January 1979 strike? What impact did this strike have?
30%
Affected deliveries and caused petrol shortages
How much of a pay increase did the National Union of Public Employees (NUPE) demand? What impact did this have?
40%
Binmen and grave diggers went on strike, rubbish piled up in the streets (media sensationalised off this)
How did the media criticise Callaghan during the winter of discontent?
Callaghan at a summit in the West Indies, image surfaced of him relaxing in the sun.
Newspapers (The Sun) used the headline “CRISIS? WHAT CRISIS?” to paint Callaghan as out of touch
How did the winter of discontent end?
Strikes settled by pay increases, showed how Labour could not control unions or the economy
