Labour + Wilson 1964-1970

Question 1

1964 Election

Answer 1

• Alec Douglas Home vs Harold Wilson
  • 304 seats vs 317 seats
  • 43.4% vs 44.1%
• Home was seen as “out of touch” as he was upper class
• Wilson “down to earth”, contrasted heavily to aristocratic Home
• “White Heat of technological revolution” (Wilson)

Question 2

Economic Situation 1964-1970

Answer 2

• Labour Gov. inherited £800 mil in Balance of Payments deficiency 1964
• Wilson promised to end “stop-go economics”
• Ministry of Technology 1964: Frank Cousins appointed Minister for Technology
• Cousins later resigns

Question 3

Causes of the Devaluation of the Pound 1967

Answer 3

• Department of Economic Affairs created 1964: George Brown appointed as head
  • Alcoholic, bad rep
• Long term solutions for growth
• Callaghan was unhappy that the DEA was taking up Chancellor and Treasury’s job
• Seamen’s Strikes (1966): secure higher wages + shorter working week
• Docks Strikes (1967)
• Heightened Balance of Payments Deficit
• Loan from IMF

Question 4

Devaluation of the Pound 1967

Answer 4

• £ went from $2.80 to $2.40 (14% less!)
• Embarrassment for Britain and Wilson
• Roy Jenkins 1968 Budget
  • Raised taxes by a total of £923 million
  • Raised taxes on petrol
  • Restored NHS prescription charges
• Inflation still high (12%) by end of Wilson Gov.
  • BUT achieved balance of payments SURPLUS

Question 5

Rejection from EEC 1967

Answer 5

• Britain’s application vetoed by Charles De Gaulle (devaluation)
• Worry that America would take over EEC due to Special Relationship
• 2nd time Britain had been rejected