Sixties: Economic and Industrial Policy

Question 1

What problems faced Britain economically?

Answer 1

1. decline of post-war boom, Conservatives’ failure to tackle lack of productivity compared with Japan and West Germany and decline of traditional industry eg textiles and shipbuilding
2. balance of payments deficit of £800 mill by 1964
3. Labour’s promise to modernise the economy and end stop-go policies
4. reliance on TU support, rise of local activism eg wildcat strikes and internal division between MPs over policy towards wages and TU rights

Question 2

What was introduced to try and develop the economy?

Answer 2

1. 1964 “National Plan”; department of economic affairs under George Brown that set up economic planning councils and growth targets while planning wages and prices with TUs, employers + civil servants.
2. 1965 Prices and Incomes Board was set up to keep down inflation and from 1966 this body issued Prices and Incomes orders to limit price and wage increases by law
3. 1967 deflationary policies: pound devalued by 14%, cut defence spending, raised HP restrictions/interest rates

Question 3

How was economic policy unsuccessful?

Answer 3

1. “National Plan” was opposed by chancellor Callaghan and was eventually abandoned by 1967
2. 1st sterling crisis in 1965, then in 1966 partially due to National Union of Seamen’s strike and 3rd in 1967 due to 6 day war in Middle East and major national dock strike
3. Frank Cousins resigned from gov in 1966 due to Wilson’s critical attitude to strikers
4. inflation 12% 1970

Question 4

How was economic policy successful?

Answer 4

1. 1965 Post Office Tower was opened
2. 1966 Tony Benn took over as minister if technology which led to some modernisation eg Concorde
3. Jenkins’ deflationary measures 1968-70 led to balance of payment surplus

Question 5

What did Labour introduce/do to develop industry?

Answer 5

1. 1964 appointed Cousins as minister of technology
2. 1965 Wilson urged TUs to cooperate with prices and incomes policy
3. 1969 minister of employment Barbara Castle (with Wilson’s backing) produced white paper “In place of Strife” which aimed to limit TU action by law eg strike ballots, 28 day cooling off period, gov settlement in demarcation disputes + industrial relations court

Question 6

How did industrial policy fail?

Answer 6

1. 1966-67 relations between gov and TUs deteriorated due to seamen’s and dockers’ strikes
2. white paper had serious opposition from TUs, home secretary Callaghan and 50 Labour MPs that led to its abandonment. Was replaced by a face-saving compromise with the TUC

Question 7

What industrial policy did Conservative opposition impose?

Answer 7

1967 Edward Heath’s “Fair Deal at Work” policy which aimed to give TU’s “corporate legal status” and make them more accountable to legal action and control