The Conservatives in office 1951-64 Flashcards
Marshall Plan
This increased demand for British products abroad
Butskeillism
First used in 1954 by the Economist.
Butler set the pattern of economic policy. He continued Labour’s aims of:
Trying to maintain full employment
Expanding the welfare state
Keeping Britain’s military defence programme.
This suggests that the ideology of Butler and Gaitskell were similar.
The Suez Crisis 1956
Nasser was promised US and UK loans for the Aswan Dam. But the USA learned that he had also approached the USSR countries for aid, so he withdrew his offer.
In July 1956, Nasser announced the nationalisation of the Suez Canal, in order to raise the necessary finance.
Eden declared that, ‘Nasser could not be allowed to leave his thumb on Britain’s windpipe.’
Americans, French and Britain applied pressure on Egypt through the creation of a canal users’ association.
On 5th November, the Soviet Union issued a formal note to Britain, asking them to withdraw from Suez. Said that they were willing to use rockets against the Western invaders.
4th November 1956
Anti-war rally in Trafalgar’s Square.
Aneurin Bevan spoke.
He addressed 30,000 protesters and accused the government of blackening the name of Britain.
Macmillan and Butler
Macmillian made Butler his home secretary.
He took at liberal approach towards legal and social issues.
e.g. the Homicide Act of 1957.
His liberal stance hinted that the Tories were prepared to modify their traditional status.
Economic policy 1957-64
Compared to improvements abroad, the British economy appeared sluggish. Despite this, the government continued with Keynesian economics.
The aim was to avoid the extremes in inflation and deflation.
Budget politics
In his 1959 budget, Derick Heathcoat Amory made an effort to boost support for the government in the upcoming election by introducing a range of tax cuts. This led to increased inflation and a wider trade gap. Faced with this, he changed direction and adopted deflationary methods, which included tax cuts and interest rates rises, cuts in public spending etc.
In 1963, in order to regain lost popularity, Macmilian’s government returned to an expansionist budgetary policy; taxes and interest rates were again lowered. The consequence was another boom in consumer spending. The net result was by the end of 1964, Britain had a balance of payments deficit of over £800 million.
Stagflation
Referred to the situation in which industry declined but inflation still persisted. The economy suffered the best of both world.
Britain’s industrial growth rate
GDP growth rate was the lowest in Western Europe.
UK= 2.3%
West Germany= 5.1%
Italy = 5.6%.
The major reason for this was heavy defence expenditure.
West Germany= 10.8% of R&D was spent on defence
France = 26.2% of R&D was spent on defence
UK= 34.5% of R&R was spent on defence
Living standards under conservatives
In July 1957, Harold Macmillan stated that British people have never had it so good.
Wages
Wages rose ahead of prices. Growth in real wages: 1951-55- 2.2% 1955-60 - 2.9% 1960-64- 4.0%. People were able to buy more with their money.
Hire purchase
Greater availability of credit.
Consumers could buy more manufactured goods.
In addition, foreign holidays, clothing and mod cons came within the reach of ordinary people.
Housing
Attlee’s government 600,000 houses by 1951.
Conservatives committed themselves to building 300,000 houses annually.
Tories built 1.7 million homes, 60% of these were building new houses.
Rent Act of 1957, abolished rent control and put 6 million properties on the market. This meant that rents rose considerably, making it difficult for some to afford rents.
This created the conditions for a property owning democracy.
Education
Central disagreement was between those who wished to end 3 tier schooling and replace it with a system of comprehensive schools and those who defended the grammar schools.
Edward Boyle (minister of education from 1962-1964) urged Macmillian to abolish the 11 plus exam.
Examples of comprehensive schools;
Sandfields school in Wales, 1958.
Risinghill school in Islington, north London, 1960.
Robbins Report
- Expansion of the existing university
The 12 existing colleges of advanced technology to be upgraded into university status
Larger grants to be provided so that no potential student would be deterred by lack of income.