Labour Governments of Wilson & Callaghan Flashcards
Info that is on the specification
What were the economic issues in 1974?
- inflation was 15%
- balance of payments was £3 billion
What were the two main inherited problems for the 1974 labour government?
- trade unions
- Northern Ireland
What was the issues with the labour government in 1974?
- less unified
- Wilson was old and less energetic
- minority government
What are the issues with the minority government?
they had to rely on other parties in order to pass any legislation
What are some of the reasons that the Conservatives lost the October 1974 election?
- miners strikes
- unemployment
- issues with Ireland
- increase in representation for other parties
How long did Wilson lead for?
1974 - 76
What did Wilson wish to do in regards to industrial relations?
Wilson wanted to act quickly in order to demonstrate the Labour being better equipped than the Conservatives to work with trade unions
What did Wilson achieve in 1973?
The Social Contract with the TUC
What did the Social Contract serve as?
The trade unions were no longer allowed to demand wage increases
What did Wilson manage to end?
the state of emergency and the three day week
What was the cause of the surge in inflation?
wage increases
Who was in charge of the economic budget in 1975?
Healey
What were the key aspects of Healy’s 1975 budget?
- rises in taxation
- cuts to public spending
What financial board was set up in 1974?
National Enterprise Board
What was the purpose of the National Enterprise Board?
to increase investment and provide financial aid
What happened to the 1975 economic policies?
their effectiveness was brought into question as it became clear that the social contract was not working