The Conservative Government 1970-74 Flashcards
What factor contributed to Labour’s complacency in the 1970 General Election?
Wilson had a 51% approval rating, compared to Heath’s 28%, which led to complacency in Labour’s campaign. The Spectator reported Wilson was already looking ahead to becoming a ‘great Prime Minister.’ Richard Crossman mentioned that the good weather and the feel-good factor made Labour think they were ‘coasting’ to victory.
What was the issue with Labour voter participation in the 1970 General Election?
Labour voter apathy was a significant issue. Richard Crossman mentioned that many Labour supporters did not turn out to vote. Party membership had dropped from 830,000 in 1964 to 680,000 in 1970, causing fewer activists and campaigners. This decline was attributed to disillusionment caused by Wilson’s policies on Vietnam, deflation, and the failure of ‘In Place of Strife.’
What Conservative policies contributed to their success in the 1970 General Election?
The Conservatives ran on policies of reforming industrial relations, reducing state intervention in the economy, abandoning government controls on wages and prices, and applying to join the EEC.
How did Heath’s leadership play a role in the Conservatives’ success in 1970?
Heath demonstrated decisiveness as leader of the opposition, such as sacking racist shadow minister Enoch Powell in 1968, despite Powell’s popularity with Conservative voters. The Daily Express praised Heath’s leadership, describing him as having ‘guts.’
What was the economic situation when Heath took office in 1970?
The Conservatives inherited an inflation rate of 5% in 1970, with unemployment at 3.8%. By 1974, inflation had risen to 10%, and the unemployment rate was at 3.6%. The balance of payments had shifted from surplus in 1970 to deficit by 1974.
How did global events impact Heath’s economic policy?
Heath faced several global economic crises, such as the ‘Nixon Shock’ in 1971, and the Oil Crisis of 1973. These events impacted inflation and Britain’s trade balance, influencing Heath’s economic policy.
What was the impact of the Nixon Shock on Britain’s economy?
In 1971, US President Nixon ended the Bretton Woods system of fixed exchange rates, which devalued the dollar and made British exports more expensive in the US, reducing Britain’s ability to sell goods in its key market.
What was the effect of the 1972 pound ‘floating’ on Britain’s economy?
In 1972, the pound was floated, meaning its value was no longer fixed but determined by the market. This caused the pound to decrease in value, making imports more expensive for Britain.
What caused severe inflation in the early 1970s?
Severe inflation was caused by the oil crisis of 1973, a worldwide rise in commodity prices, particularly food and fuel. Additionally, the 1972 budget cut taxes and increased public spending, further stimulating demand and causing inflation.
What was the initial approach of Heath’s economic policies?
Heath’s economic policies were based on neoliberalism, aiming to reduce state intervention and allowing failing industries to collapse.
What caused Heath to make a ‘U-Turn’ on his economic policies?
In 1971, Rolls-Royce, a vital British defence company, was facing bankruptcy and was nationalized instead of being allowed to fail. In 1972, the government invested £35 million to save jobs in the Upper Clyde shipbuilding industry. These actions were part of Heath’s ‘U-Turn’ from neoliberal policies.
What other measures did Heath take in response to economic challenges?
In 1972, Heath set up the Ministry for Industrial Development to support deprived industrial areas. He also introduced the Price Commission and Pay Board to regulate wages and prices, similar to Wilson’s NBPI.
What triggered the 1973 Oil Crisis?
The 1973 Yom Kippur War between Egypt and Syria and the US’s support of Israel led the Organisation of Arab Petroleum Exporting Countries (OAPEC) to impose an oil embargo on countries supporting Israel, including the UK. This quadrupled oil prices and caused significant economic disruptions in Britain.
What was the aim of the Industrial Relations Act (1971)?
The Industrial Relations Act sought to rebalance power between trade unions and the government by ending the ‘closed shop,’ establishing the National Industrial Relations Court (NIRC) and the Industrial Relations Commission (IRC), and allowing the government to impose pre-strike ballots and ‘cooling off’ periods.
What was the response to the Industrial Relations Act?
The Act faced strong opposition from trade unions. The TUC advised unions to de-register from the NIRC, and in 1972, a legal judgment undermined the Act by releasing dock workers who refused to appear before the NIRC.
How did strike action change from 1970 to 1974?
The number of working days lost to strikes increased from 10.9 million in 1970 to 23.9 million in 1972, and remained at 14.75 million in 1974. This was driven by opposition to the Industrial Relations Act and inflation-induced wage demands.
What was the cause and outcome of the 1972 Miners’ Strike?
The National Union of Mineworkers (NUM) demanded a 47% pay increase, above the 8% offered by the National Coal Board. A strike began in January 1972, leading to power cuts and a state of emergency. The miners won a 27% pay increase, and the strike highlighted the failure of the Industrial Relations Act to control trade union power.
What led to the introduction of the ‘Three Day Week’?
In November 1973, the miners began an overtime ban, halving coal production. Heath declared a state of emergency, and the government introduced the ‘Three Day Week’ starting 31 December 1973, limiting electricity use, imposing a 50 mph speed limit, and restricting television broadcasting.
What was Heath’s slogan for the February 1974 election, and why?
The slogan was ‘Who Governs Britain?’ Heath hoped to gain a mandate from the public to confront the miners’ power. However, the election result was inconclusive, and Labour formed a minority government.
