Political Developments: Economic and Housing Issues Flashcards
Who did Churchill install at the Ministry of Housing?
Macmillan
Why was Churchill initially cautious to do anything drastic?
Only had a small seat majority of 17
How did the small seat majority impact the way Churchill structured his cabinet?
He made it from his trusted wartime associates
How many houses did Macmillan have to build a year?
300,000
Which sector did Conservatives get to make houses?
Private Sector
Which sector did Labour want to make the houses? Why?
Public Sectorto avoid tenants experiencing discrimination
When did the Tories Rent Act happen? What did it do?
- Lifted rent controls on over 400,000 houses
How would the Tories Rent Act affect some British people?
Poorer people would not be able to pay rent
What was the Ministry of Housing called?
A ‘poisoned chalice’
Why was the ministry of housing referred to in this way?
It could ruin someones political reputation
What percentage of government spending went to the Korean War?
30%
What is the belief of natural swing?
One party winning will correct itself in favour of the other by the next election
What was the Conservative seat majority in 1951?
17 seats
Who did Churchill put as Chancellor of the Exchequer?
R.A Butler
What ideology was Butler Under?
One Nation Conservatism
What scheme did the treasury make to try and help with economic crises? What year?
‘ROBOT’ scheme, 1952
What would have been the impact of the ROBOT scheme?
High unemployment
Who did Butler have a lot of continuity with in his policies?
Hugh Gaitskell
What did the similarities between Butler and Gaitskell emphasise?
Cross-Party Consensus
What industries were denationalized under the Conservatives?
Iron, Steel, Road Haulage
What was unemployment at in 1955?
232,000 so below 1%
What did Conservatives say they would do with Labours Welfare State?
They would keep it and expand it
Which economic theory dominated all governments from 1945-79?
Keynesianism
What was Keynesianism?
Government should always invest in industy even if going in to debt for growth
What was Butler told when he became Chancellor of the Exchequer?
Large BoP deficit due to the Korean War, so British reserves to pay for imports were stressed
What was a recurring economic issue for the Conservatives?
Stop-Go Economics
How did Butler respond to the BoP Deficit?
He cut travel allowances to £50.00
What was the impact of Butlers budget to reduce the BoP Deficit by 1953?
Surge in exports occurred so there was a boom in 1953
What did Butler do in his 1953 budget?
Cut income tax to 45% and cut purchase tax
What would the ‘ROBOT’ scheme have done?
Abandonde the pounds fixed exchange rate
