The Sixties 1964-1970: Political + Economic

Question 1

Who was the prime minister within this time and what was their party?

Answer 1

Harold Wilson- Labour (1964-1970)

Question 2

What were the 2 solutions for Labour to stop the economic cycle of prosperity and to modernise the country and did they use them?

Answer 2

1. Deflation- supported the value of the pound and prevented inflation, but this was the old stop go approach the party was determined to break away from + fears it would stop the party from meeting its manifesto commitments
2. Devaluation- would make imports more expensive and help exporters by making British goods cheaper in other countries, but would make Britain look weaker in the world and would make it actually weaker
   - Labour wanted to avoid using these as they threatened Labour’s reputation, welfare and technological aims
   - However, crises in the value of the sterling, strikes and war in the Middle East left the Labour government with no choice but to follow a policy of devaluation

Question 3

What was established to prevent inflation by coming to an agreement with industry, unions and civil servants?

Answer 3

The Department of Economic Affairs

Question 4

What policy was introduced in 1966?

Answer 4

Prices and incomes policy

Question 5

What was the Labour governments relationship with the unions?

Answer 5

• Mixed
• Wilson relied on the unions for his economic policy
• However, Wilson also sought to limit unofficial strikes known as wildcat strikes

Question 6

What did Barbara Castle do and what did it lead to?

Answer 6

• Attempted to bring in new measures to ensure striking was to be used more responsibly through producing “In place of strife”
• Popular with voters
• Union leaders and the left of the Labour Party threatened to rebel
• Wilson backed down in humiliating circumstances

Question 7

Why did unionists set up their own paramilitaries and lead marches and protests which turned to riots?

Answer 7

Out of fears that the IRA would begin a new campaign after there were tensions within Ireland over its partition and civil rights movements in Northern Ireland accused the establishment of being biased against Catholics

Question 8

What was Wilson’s ideology?

Answer 8

He supported Britain’s nuclear deterrent and attempted to reform the trade unions

Question 9

How had the affluence of the post war boom not been reflected in Britain’s economy?

Answer 9

1. By 1964 it was widely accepted that Britain was lagging behind other countries, such as West Germany and Japan
2. Productivity and growth rates were down
3. Trapped in a cycle of stop go
4. Bursts of prosperity always led to inflation
5. There were runs on the pound
6. Regular crises over the balance of payments

Question 10

How much was the deficit Labour had inherited?

Answer 10

£800 million

Question 11

When was the sterling crisis, why was it caused and what did its cause lead to?

Answer 11

• 1965 and 1966
• 1966 one partly caused by a long and bitter strike by the National Union of Seamen
• The government defeated the strike but many were shocked by Wilson’s critical attitude to the strikers
• The relationship between the government and the unions was starting to break down

Question 12

What happened in 1967 which damaged the government and Britain’s economy badly?

Answer 12

1. Outbreak of war in the Middle East which affected oil supplies
2. Major national dock strike which affected the balance of payments
3. Government decided that devaluation could not be avoided
4. The pound had dropped by 14% to 2.40 US dollars
5. Labour also made defence cuts and introduce hire purchase restrictions and higher interest rates

Question 13

How did Roy Jenkins, Wilson’s chancellor, improve the economic state of Britain?

Answer 13

1. Raised taxes
2. Tightened government spending in all areas of the economy, giving top priority to the balance of payments
3. Initially made the government unpopular but, by 1969, Jenkins had achieved a balance of payments surplus

Question 14

What were the Labour divisions?

Answer 14

1. Wilson feared he may face a leadership challenge from Brown, Callaghan or Jenkins
2. Brown was hugely resentful that he had lost the leadership election to Wilson and was further disappointed that he was not made foreign secretary in 1964
3. Wilson didn’t support Jenkins’ liberalising legislation as Home Secretary and believed that Jenkins’ support of devaluation was a plot to replace him

Question 15

What were the 1st signs of the post war consensus breaking down by the 1970’s?

Answer 15

1. Britain’s economic problems hadn’t been solved by the consensus policies
2. Trade unions were more uncooperative, forcing the Labour Party to try and reform industrial relations
3. The left of the Labour party was dissatisfied by moderate consensus Labour policies
4. Social problems and poverty hadn’t ended