the end of post-war consensus 1970-79 Flashcards
L29 - general election results 18 June 1970
Conservatives won 330
Opposition total was 300
Majority 30
Why Conservatives won - Labour’s economic and industrial problems
High inflation - rising through 1960s. By 1970, it reached 6%, causing a rising cost of living, particularly impacting middle class. Labours failure to bring it under control became an issue for voters.
Unemployment was rising, 3.5% by 1970, more growing concerns especially in manufacturing about job losses. Impacts working class voters due to job insecurity
Devalued pound in 1967, reduced by 14% from $2.8 to $2.40. National humiliation, loss of confidence in economy. Higher import prices further fuelling inflation.
Tried to tackle inflation through incomes policy (limit wage increases), clashes with demands of unions. Inflation increased and demands did too. In Place of Strife damaged labours relations with the unions as they felt betrayed
Why Conservatives won - Heath’s appeal
Image of strong and decisive leadership, contrasting Wilson
Campaigned on promise to restore industrial peace, his tough approach to unions was seen as necessary in response to the strikes that plagued Britain, so voters were attracted to his law and order approach.
Law and order in contrast to Labour who couldn’t resolve industrial disputes and were too sympathetic to unions
Heath made use of Labours weaknesses in their campaign, capitalising on their failure to control inflation and economy. Resonated with frustrated voters
Why Conservatives won - Enoch Powell
He was excluded from their front bench but his views on immigration influenced broader conservative thinking. Heath publicly distanced himself from his rhetoric but he understood the concerns of the electorate who were worried about immigration. His rhetoric created an environment in which Heath could appeal to those concerns without directly embracing the extremist views. Heath didn’t adopt his policies but used his language of concern over immigration and law and order to resonate
How many people Powellites votes conservative?
50% were working class (of all of those who had switched from one party to another). 18% of Labour ones and so had 24% of Liberals
Wilson and his aims for PM
Similar background to Wilson, so not in establishment. Determined with a clear set of objectives. Had been leader of opposition for 5 years and spent time developing policies but not skilled at game of politics- getting allies and charismatic.
Aims - increase standards of living (appeal to WC), address inflation at 6% (middle class), develop world and fund defence abroad, improve public sectors, control union demands, not bail out business going bust
The Selsdon Park Programme
Shift away from the PWC, particularly in economic policy (unemployment and inflation are going against PWC). January 1970 as part of the campaign, conservative conference held at Selsdon Park Hotel. Paved way for ‘ new right’ thinking, break away from left policies.
Introduced-
Tax cuts- to stimulate economic growth, giving business more control over their money so not taxed as highly. Top rates of income tax reduced.
Reduce inflation- away from Keynesian economics, reduce government borrowing and public spending, stopping ‘go’ cycle to control currency value
Free market and reduced state intervention- supply and demand drive economic growth. Inefficient businesses can go bust ‘lame duck’ business
Law and order- tougher stance on crime, increase police powers to combat crime
Trade Union reform- limit their power and influence in shaping economy, restrict strikes
New right thinking- abandon prices and incomes board and policy
This was set up by Callaghan, with a limit on wages of 3.5%. Direct government involvement in businesses.
The conservatives would not seek to impose a wage freeze or interfere with pay settlements, instead they’d let market forces (natural forces of supply and demand operating without government interference) operate between employer and worker
New right thinking- Industrial relations act 1971
For market forces to operate naturally, unions power would need to be limited.
Act did-
Set up Industrial Relations Court, to oversee industrial disputes between worker and employer to avoid strike, and prove a legal way to resolve
Registered trade unions, unions would need to be officially registered with the government, only registered ones had a legal right to represent workers (allows government to prepare for strikes)
Legal restrictions on strikes, unions hold a ballot before a strike, and it would only be legally protected if a majority voted, if not, union leaders and members could be fined
Cooling off period, minimum period of time between announcement of strike and it actually happening so government could negotiate and prepare, hoping they could let leaders cool off to not be angry
Barber’s policies as CofE
1972 budget-
£1 billion tax cut, so government doesn’t need as much money
Cut in income tax, benefits higher earners as they shouldn’t be punished for their wages and so motivates production
Corporate tax cuts
Cuts in public spending (lame ducks)
Labour Party oppose Heath’s policies
Cut in income tax- benefitting rich over poor
Reduced public spending- less money for society, more business close, unemployment
Industrial Relations Act restricted workers ability to protect themselves
Breaking protection from cradle to grave
Wilson - ‘you’re out on your own’
Example of PWC- 1971 National Insurance Act
Increased pensions and sickness benefits to help low incomes
New benefits for disabled people eg Attendance Allowance
Introduced Invalidity Benefit to replace sickness benefit for long term illness
Family Income Supplement- top-up benefit for low income families to reduce poverty
Shows a commitment to supporting the most vulnerable
Example of PWC- Education and School Funding increases
School leaving age raised from 15 to 16 in 1972, requiring investment in buildings and teachers
Increased funding for comprehensive education
Thatcher as education minister oversaw the expansion of more comprehensives than any previous minister mainly as local authorities supported the shift
Example of PWC- NHS spending growth
Increased by over 6% annually
Expansion of hospital services and medial staff
New social care support for the elderly and disabled
Despite initial attempts to control public spending, Heath continues tradition of investing in universal healthacre
Example of PWC- Housing and public sector growth
Investment in council housing- 350,000 homes built a year, many council too
Continues rent subsidies for low income families
One of the biggest public housing drives of the 20th century = commitment to state led social welfare policies
Heaths response to Wilson
Heath created the ‘one nation’ pressure group as he believed the party had to come to terms with the welfare state.
But he believed that compassion had to be combined with modern methods of running the economy
Selsdon Park programme was not meant to reject consensus politics
L30 - what was the barber boom?
Inflation by end of 1972 was 7%, by 1974, 16% (groups with tax cuts have more to spend)
Industrial output in decline (not producing much, less productive and incentives, wage increases is reduced incentive)
Unemployment in 1972- 1 million, highest since WW2 (lame ducks closing)
STAGFLATION
What was the U-Turn?
After 18 months of trying a new style of government, Heath did a u turn so went back on his previous policy (looks weak, politician hasn’t has foresight to predict issues)
Suggest he is too cautious to commit to ending PWC as he nationalised Rolls Royce in 1971 before it went bust and in 1973, gave £34million to Upper Clyde Shipbuilders to save it, and he intervened in increases of pay to ensure they’re related to increases of output
He abandoned New Right policies of wages, and reduced business intervention
Would anger high earners, public due to tax increase. Divisions in Conservative Party
The miners in 1960s
Their wages were 7.4% above the average pay of workers in manufacturing, but their pay fell behind and im 1970, earning 3.1% less than average manufacturing worker.
Strike action under heath
He passed inaugural relations act to make striking difficult, but they increased in rebellion.
1971- 13,551,000 days lost. 2228 strikes
1972- 23,909,000 days lost. 2497 strikes
Reaction to the Industrial Relations Act
Trade Unions Congress rejected the Act and refused to cooperate with it.
Unions refused to register under the rules
In February 1971, 100,000 unionists demonstrated in London
In 1972, five dockers were jailed under the act for defying a court order to stop picketing (encouraging others to strike), and sympathy strikes and protests follows to they government released them
The act actually strengthened the unions by uniting them as a bigger force.
What was the Miners strike 1972?
Started on 9 January, at the peak of harsh winter to cause most noticeable destruction for 7 weeks. Using flying pickets (outside of other workplaces) to stop the movement of coal around the country to disrupt fuel and electricity supplies
Yorkshire miners were passionate led by Arthur Scargill
Every coal mine closed
Consequences of the miners strike
75% of electricity came from coal burning power stations
9th February - state of emergency declared
Standoff between gov and unions
Schools dependent on coal fired heating close
By mid February, 1.2 million workers were laid off
Three day week
Battle of Saltley Gate 9-10 Feb
In Birmingham
When the strike began, it was estimated there were 8 weeks worth of fuel stockpiles
But they weee unevenly distributed around the country
From Saltley depot, 700 vehicles collected fuel each day
News of mile long queues of Lorrie’s waiting to collect fuel was published on 3 February in Birmingham Mail. Miners set up a picket line at the works
In Days, the pickets request for assistance was answered by thousands of miners from South Yorkshire and wales. By 10 feb, the number of pickets and protesters (including more unionised workers from Birmingham) reached around 15,000. Blockade forced police, who’d kept the depot open all week, to surrender and close gates, so Lorrie’s couldn’t pick up fuel, success for miners.
Brought Arthur Scargill to national prominence and flying pickets were effective