Labour's economic and industrial Policies from 1964

Question 1

What was Labour’s economic aim?

Answer 1

• modernise UK economy

- avoid deflation/devaluation which would respectively hurt people financially/weaken the UK’s image abroad.

Question 2

What was the economic policy “National Plan” established in 1964?

Answer 2

• department of economic affairs was set up under George Brown
• setting up economic planning councils and growth targets
• while also planning wages and prices with trade unions, employers and civil servants
• met with opposition from Chancellor James Callaghan
• lost its way and was abandoned in 1967

Question 3

What was the Prices and Incomes Board which was set up in 1965 and what else happened in 1965?

Answer 3

• board was meant to keep down inflation
• from 1966 this body issued Prices and Incomes Orders to limit price and wage increases by law
• 1st Sterling crisis
• the Post Office Tower was opened

Question 4

What happened economically in 1966?

Answer 4

• Tony Benn took over as minister of technology, leading to some modernisation (eg Concorde)
• 2nd Sterling Crisis (partly caused by National Union of Seamen’s strike)
• crisis and strike defeated but trade unionist Frank Cousins resigned from Government due to Wilson’s critical attitudes to the strikers

Question 5

What happened to Britain’s economic policy in 1967?

Answer 5

• 3rd Sterling Crisis caused by 6 day war in Middle East and major national dock strike
• Wilson devalued pound by 14%, cut defence spending and raised HP restrictions/interest rates (deflationary policies)
• Labour’s application to EEC was rejected

Question 6

What happened between 1968-70 to Britain’s economic policy?

Answer 6

• Chancellor Roy Jenkins’ deflationary measures (cutting government spending) led to balance of payments surplus despite being unpopular
• inflation remained high at 12% by 1970

Question 7

What was Labour’s aim industrially from 1964?

Answer 7

• aimed to involve the trade unions and industrialists in decision making in a “National Plan” from the outset.

Question 8

What happened in 1964 and 1965 with trade unions?

Answer 8

• 1964: Labour appointed trade unionist Frank Cousins minister of technology
• 1965: Wilson urged trade unions to co-operate with his prices and incomes policy

Question 9

What happened in 1966 and 1967 with trade unions?

Answer 9

• 1966-67: relations between trade unions and government deteriorated over the seaman’s and dockers’ strikes, although the strikes showed that the big trade union bosses were not central to the strikes. Tended o be organise by local activists as “wildcat” strikes
• 1967: Conservative opposition leader Edward Heath announced his “Fair Deal at Work” policy, which aimed to give trade unions “cooperate legal status” and make them more accountable to legal action and control.

Question 10

What happened in 1969 with Labour’s industrial policies?

Answer 10

• minister of employment Barbara Castle (with Wilson’s backing) produced the white paper “In place of Strife”.
• it aimed to limit trade union activity by law: strike ballots, a 28 day cooling off period before a strike went ahead, government settlements in demarcation disputes, and an industrial relations court to prosecute rule-breakers.
• serious opposition from trade unions, home secretary James Callaghan and 50 labour MPs led Wilson to abandon it.
• instead he accepted face-saving compromise with the TUC.