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
Who was Wilson’s successor?
James Callaghan
Why did Wilson reisgn?
due to old age
What did Callaghan plan to do to improve the economic situation?
apply for an emergency IMF (International Monetary Fund) loan
What is the significance of the IMF emergency loan?
- economy recovered
- reinforced the image of Britain as being in economic decline
What is devolution?
the transfer of powers to lower levels of government
What did Callaghan do in order to avoid a vote of no confidence from the Conservatives?
Lib-Lab Pact
Where did Callaghan wish to take the policy of devolution?
Scotland and Wales
What did the Devolution Act of 1978 cause?
1979 referendums
What were the results of the 1979 devolution referendums in Scotland and Wales?
- simple majority for yes in Scotland (51.6%)
- conclusively against devolution in Wales
What was the impact of the devolution refernedums?
- a simple majority in Scotland was not enough
- disappointed Scottish nationalist MPs withdrew support for Labour party
What is the key event for the downfall of the labour party in 1979?
Winter of Discontent
What was the trigger for the winter of discontent?
Autumn 1978- the TUC rejected a proposal of a 5% wage increase limit - encouraging higher demands from trade unions
What were some examples of the industrial action that took place due to angered unions?
- disruption in transport
- strikes for public sector workers
- dustmen & gravediggers strikes
What was the winter of discontent not as challenging as?
the 1974 miners strikes
What was the result of the winter of discontent?
- average pay increase of 10% achieved
- public mood remained negative
What major political event happened in 1979?
General Election
Why was calling an election in 1979 a bad idea?
- winter of discontent soured public opinion
- changes in the political landscape
- reputation with trade unions ruined
How did the labour demographic change due to the events leading up to the 1979 election?
- more (skilled & unskilled) workers began to consider voting conservative
- media favoured conservative
What event forced the 1979 election?
a failed vote of no confidence on the subject of Scottish devolution
What was the result of the 1979 election?
- labour only dipped by 3%
- conservative win
What were the issues like in Northern Ireland?
- strong opposition to the Sunningdale agreement
- increased secretarian violence
- inherited issues
What are some examples of the issues in Northern Ireland?
- Ulster Workers Council determined to bring down the Executive
- changes in prisons caused increased issues
What was Wilson forced to reimpose due to the increased tension in Northern Ireland?
direct rule
What were the changes within the prison systems?
Special Category was removed from terrorist prisoners; no longer considered political prisoners but criminals - this was disliked by paramilitary groups
What are some examples of response to the status changes within prisoners?
- dirty protest
- blanket protests
