Political And Economic Policies Flashcards
What happened at Selsdon Park before 1970 election?
-cons conference to approve policy programme for basis of cons 1970 manifesto
-but Heath still beloved in Post war consensus + one nation conservatism
-Selsdon park not intended be all out rejection of PWC policies
What was the Selsdon Park Manifesto?
-tax reform
-better law + order
-immigration controls
-reforms to TUs
-cuts to public spending
-end to public subsidy of ‘lame duck’ industries
What are ‘lame duck’ industries?
-industries unable to compete +survive without state support
What political policies did Heath pass during his premiership?
-school leaving age to 16
-local govt reorganised
-Br currency now decimal — 100 new pence + not 144 old pennies to be in line with currencies of other European countries
Who was the new chancellor?
-Anthony Barber
What did Anthony Barber do?
-introduced tax cuts to encourage investment
-introduced cuts in public spending
-barber boom
What did the barber boom do?
-began with rapid rise in inflation but not accompanied by economic growth
-unemployment rose
-caused stagflation — inflation + stagnant economic growth at same time
What did the government do in response?
-unemployment nearing 1 million + govt action needed
-prestigious firm Rolls Royce nationalised 1971
-govt money poured in prevent Upper Cycle shipbuilders going bankrupt ~ U-turn
What was the U-turn?
-reversal of previous policy
-heaths 1971 was retreat from free enterprise econ policies govt tried follow from 1970
What was happening by 1973?
-investment by govt into modernising industry working
-unemployment back to 500,000
-but oil price crisis 1973 changes this
What was the oil price crisis?
-triggered by Yom Kippur war - promoted OPEC declare oil embargo
-exports stopped + prices oil 4x usual
-long queues formed outside petrol stations
What was the OPEC?
-led by Saudi Arabia + aim protect interests of members
-it agreed to fix levels of production to prevent prices falling too low
