Labour governments of Wilson [1974-76]

Question 1

Times of Wilson and Callaghan as PM?

Answer 1

Harold Wilson [1974-76]

James Callaghan [1976-79]

Question 2

Inherited problems from the conservatives = ?

Answer 2

-Inflation was at 15%
-Balance of payment deficit was at £3 billion
-Problems with the Trade unions
-Precarious Northern Ireland situation

Question 3

What was Labour’s overall majority from the 1974 election?

Answer 3

3 seats

Question 4

What did having a majority of 3 seats do to Labour?

Answer 4

Labour had a minority government.

Question 5

Minority government = ?

Answer 5

Having to rely on other parties for support in order to pass through Legislation in parliament.

Question 6

Where did Labour get their support from?

Answer 6

Liberals

Question 7

What was the liberal-labour pact?

Answer 7

‘Lib-Lab’ pact

Question 8

How seats did the liberal party have?

Answer 8

18

Question 9

How did the ‘lib-lab’ pact help labour?

Answer 9

Gave labour a working majority of 21.

Question 10

What was a weakness of Harold Wilson during this tenure?

Answer 10

Wilson himself was older less energetic and had lost some of his political prestige and power.

Question 11

Why did Wilson resign in 1976?

Answer 11

Wilson suddenly resigned in 1976 and the reasons cited were issues over health and a promise that he had made to his wife that he would step down after a further 2 years in the job.

Question 12

What had Wilson negotiated whilst in opposition?

Answer 12

In 1973 whilst in opposition he had negotiated the social contract with the trade union congress [TUC].

Question 13

Social contract = ?

Answer 13

Voluntary pay restraint by the unions and in return the government would repeal Heath’s industrial act and pay board.

Question 14

What message had the Trade unions been sent by Labour?

Answer 14

Trade unions were sent a clear message that the government didn’t want to enter into a confrontation with them.

Question 15

What did Labour do to the trade unions in general?

Answer 15

Followed the policy of appeasement. Tried to keep the Trade unions as happy as possible.

Question 16

How did Wilson end the state of emergency and the 3 day working week that was inherited from Ted Heath’s government?

Answer 16

Wilson reached an agreement with the national union of miners which allowed the emergency to stop.

Question 17

What did Labour do to further appease the trade union with department appointments?

Answer 17

To appease the trade unions and keep them on board two left wingers within the Labour Party were given big roles. Tony Benn and Michael foot were put in charge of the departments for industry and employment.

Question 18

What did these appointments do for trade unions?

Answer 18

These appointments gave large power to the trade unions in key working areas - employment and industry.

Question 19

What did Wilson do to get the country out of industrial crisis?

Answer 19

Large wage increases for industrial workers.

Question 20

What did the rush of wage increases do?

Answer 20

Caused a surge in inflation

Question 21

What was the aim of Denis Healey’s first two budgets?

Answer 21

The budgets first in March and then in July were both aiming to tackle the economic crisis without annoying the trade unions. Again appeasing the TUs.

Question 22

What did the 1975 April budget do?

Answer 22

Rise in taxation coupled with a cut in public spending.

Question 23

What was set up in 1974?

Answer 23

National enterprise board [NEB]

Question 24

Who headed up the NEN?

Answer 24

Tony Benn

Question 25

What did the National enterprise board do?

Answer 25

Administer government shares and holdings in private companies and to provide funding. The scheme was done to increase investment. However by 1975 it’s effectiveness was being questioned.

Question 26

What ‘lame-duck’ decision by Wilson was seen as a failure?

Answer 26

Government decision to nationalised further failing industries and companies such as car manufacturer British Leyland caused renewed controversy about the role of the government rescuing ‘lame-duck’ industries.

Question 27

What happened to the social contract?

Answer 27

Became apparent that the social contract was not limiting wage demands. By 1975 a more formal pay restraint policy was set up.

Question 28

What did this policy shift away from trade unions do to the party?

Answer 28

Shifts in policies angered trade unions and also created further divisions within the labour party, the left wingers Benn and Foot didn’t want to put much pressure on the trade unions and they believed in more government intervention in the economy.

Question 29

% of workforce unemployed in 1974?

Answer 29

2.6

Question 30

% of workforce unemployed in 1975?

Answer 30

3.9

Question 31

% of workforce unemployed in 1976?

Answer 31

5.3

Question 32

Working days lost in strikes in millions in 1974?

Answer 32

14.75

Question 33

Working days lost in strikes in millions in 1975?

Answer 33

6.01

Question 34

Working days lost in strikes in millions in 1976?

Answer 34

3.31

Question 35

GDP change in % in 1974?

Answer 35

+0.2

Question 36

GDP change in % in 1975?

Answer 36

-1.6

Question 37

GDP change in % in 1976?

Answer 37

+2.3

Question 38

Balance of payment [£m] in 1974?

Answer 38

-3565

Question 39

Balance of payment [£m] in 1975?

Answer 39

-1671

Question 40

Balance of payment [£m] in 1976?

Answer 40

-1404