Topic 3: Labour (1974-79)

Question 1

4

Describe the October 1974 election

Answer 1

• Lab won 319 seats
• Majority of 3
• Lab pledged vote on EEC membership - Wlliams claimed she would leave party if Britain voted to leave EEC
• Liberal vote damaged by IRA Guildford Pub bombings as they were less tough on terrorism

Question 2

8 - don’t need to know all!

Describe Wilson’s cabinet in 1974

Answer 2

• CX - Healey
• FO - Callaghan
• HS - Jenkins
• Env - Crossland
• Trade/industry - Benn
• Employment - Foot
• Record 2 women in cabinet (Williams and Castle)
• Balanced hard and soft left

Question 3

3

Describe the Poulson Affair (in relation to labour)

Answer 3

• Had hit tories with Maulding resigning
• Two Lab figures, Cunningham and T Dan Smith sent to prison on corruption charges
• Wilson responded by setting up Royal Commission on standards of conduct in govt

Question 4

4

Describe the emergency decisions made by Wilson in March 1974

Answer 4

• Opted for minority govt rather than Liberal support
• Repealed Industrial Relations Act
• Abolished Pay Board
• Intended to display frendly sentiment to unions

Question 5

4

Describe the Northern Ireland Constitutional Convention

Answer 5

• Rees (NI Sec) allowed Sunningdale agreement to collapse in May 1974
• Set up consultative Constitutional Convention elected via STV
• direct executive/legislative powers to be eased once tensions decreased
• Failed in May 1976

Question 6

3

Describe Northern Ireland under Wilson (1974-76)

Answer 6

• Sunningdale and Constitutional Convention fail
• Jenkins introduced the Prevention of Terrorism Act 1974 following IRA Birmingham Pub bombings
• Rees (NI Sec, 74-76) ended internment in December 1975

Question 7

5

Describe the 1975 EEC referendum

Answer 7

• Wilson agreed to ref to placate hard left, esp Benn
• Cabinet permitted free vote: yes (Castle, Benn, Powell), no (Williams, Jenkins, Thatcher)
• Those who supported ‘no’ split between two camps of impact of british workers (e.g. Castle) and issues of sovereignty (e.g. Benn, Powell)
• Wilson posed as moderate who believed on balance UK should remain in EEC
• 67% no - decisive victory for Wilson who could end principle cabinet debate

Question 8

5

Describe the May and July 1974 budgets

Answer 8

• Aftermath of 1973 Oil Price Crisis
• Keynesian feel
• Tax increases countered by higher pensions and food subsidies
• No serious cuts in public services and stability in balance of payments
• However inflation remained at 20% and manufacturing production stagnated

Question 9

3

Describe the repeal of the Industrial Relations Act

Answer 9

• Agreed in ‘social contract’
• Alliance with Employment Sec Foot helped restore govt-major union relations
• Coal strike ended by buying off miners

Question 10

4

Describe the impact of repealing the industrial relations act

Answer 10

• industrial earnings went up by 15% in 1973, 19% in 1974 and 23% in 1975
• Number of days lost to strikes dropped
• By the end of 1974, inflation was at 28% and the Unions demands were out of control (some even demanding 94% increases)
• rendered ‘social contract’ worthless

Question 11

4

Describe Jack Jones’ voluntary wage restraint policy proposal

TGWU General Secretary

Answer 11

• Suggested flat rate rise of £6 a week for everyone (v socialist policy)
• TUC accepted this as policy in June 1975
• showed clear awareness from unions that excessive wages were crippling economy through inflation and unemployment
• enacted and brought inflation down by 1976

Question 12

3

Describe the economic situation by the end of 1974

Answer 12

• Rising food prices under CAP and oil prices
• Inflation rate at 28%
• Public spending cuts needed to meet 5-7% inflation target by 1977

Question 13

6

Describe Wilson/Healey’s attempts to curb inflation (1975-76)

Answer 13

• Department of the Environment, under Crossland, imposed spending controls on local authorities
• April 1975 budget reduced money supply by
  
  • raising taxes to over £1bn a year
  • imposing a 3% maximum for wage increase
• Inflation and strikes fell steadily in 1975 and 1976
• Massive price and income policy u-turn

Question 14

2

Describe the resignation of Wilson 1976

Answer 14

• Resigned unexpectedly due to mental and physical exhaustion
• Callaghan had broad appeal and convincingly defeated Foot on leadership ballot

Question 15

4

Describe Northern Ireland under Callaghan (1976-79)

Answer 15

• Rees succeeded by Roy Mason
• Focussed on trying to get direct rule to work
• Gave greater responsibility to RUC
• Used SAS for counter-insurgency operations against IRA

Question 16

4

Describe Callaghan’s cabinet

Answer 16

• Little overall change
• Political rival Castle ejected from Cabinet
• Crossland became FS - died in 1977 and suceeded by youthful David Owens
• Partnership with Foot (DPM) kept left in line

DPM = Deputy PM

Question 17

1

Describe Calaghan’s ideology

Answer 17

Did not display socialist dogma → 1976 Party Conf stated: ‘You cannot now, if you ever could, spend your way out of recession’

Question 18

3

Describe the political impact of the 1976 economic crisis

Answer 18

• Labour lost series of by-elections
• Lost parliamentary majority
• Led to Lib-Lab pact

Question 19

4

Describe the Lib-Lab Pact 1977-78

Answer 19

• 1976, David Steel had replaced Jeremy Thorpe as leader
• Liberals did not want to fight GE on back on Thorpe Affair
• Agreed to prop up govt and avoid vote of no-confidence
• Callaghan also relied on Scottish/Welsh nationalist parties who supported govt plans for devolution

Question 20

7

Describe devolution under Callaghan

Answer 20

• Refs took place in March 1979
• Welsh devolution ref - 80% ‘no’ vote
• Scottish devolution ref
  
  • 52% ‘yes’ vote
  • ruled invalid as 40% of the electorate had not voted yes under terms of Scotland Act
  • SNP withdrew support
• Triggered no-confidence vote

Question 21

4

Describe the 1979 vote of no-confidence

Answer 21

• Brought by SNP
• Govt defeated 311 to 310
• Alfred Broughton (Lab MP) mortally ill in hospital and thus unable to vote
• Vote marked ‘last rites’ of Old Lab

Question 22

3

Describe the 1978 election that never was

Answer 22

• Elec had been expected in 1978
• Gallup poll found Healey’s 1978 budget was regarded as ‘fair’ by 68%
• Callaghan had not employed govt prerogative - instead elec would take place at worst possible time

Question 23

2

Describe the economy by 1976

Answer 23

• Signs of recovery but economy had shifted to overall lower level
• From 1960-73, economic growth had averaged 3% a year; from 1974-79, growth averaged 1.5% a year

Question 24

5 - don’t need to know all!

Describe the 1976 Sterling Crisis

Answer 24

• By autumn 1976, economy had deteriorated
• Sterling down to $1.57
• Balance of payments deficit close to £1bn
• 1.25m unemloyed
• Annual inflation at 16.5%

Question 25

# 3 Describe Healey's response to the 1976 Sterling Crisis

Answer 25

* Sought £4bn standby loan from IMF * Conditional spending cuts of £2bn - caused frictions within Labour party * Accidentally embraced monetarism

Question 26

# 6 Describe the effects of the 1976 IMF Crisis

Answer 26

* By April 1976, Healey had cut spending * IMF Crisis meant he would be forced to introduce a further round of cuts in Dec 1976 * Surplus in balance of payments by 1977 * Major fall in expenditure on housing/edu by 1979 * IMF Crisis plummeted Lab to lowest standing since post-devaluation period 1968-69 * Labour lost several by-elections (notably Ashfield - a mining constituency safe seat) → only saved by Lib-Lab pact

Question 27

# 3 Describe North Sea Oil

Answer 27

* 1974: UK imported over 100m tns of oil and exported less than 1m * North Sea Oil deposits came on stream * 1980: imports and exports were balanced

Question 28

# 4 Describe industrial relations policy under Callaghan

Answer 28

* Foot worked to produce legislation to give unions powers over closed shops * N of days lost to strikes inc in 1977 * Incomes policy of 3% had been success * 1978, Callaghan limited wage settlements to 5%

Question 29

# 4 Describe the reaction to Callaghan's income policy

Answer 29

* 1978, Callaghan limited wage settlements to 5% * Totally opposed by Moss Evans, new leader of TGWU * Thrown of of TUC annual conference * Govt remained firm

Question 30

# 3 Describe the cause of the Winter of Discontent 1978-79

Answer 30

- Unofficial strike by Ford motor workers settled with 17% pay increase, well above 5% govt limit - set precedent for private sector - eroded govt plans to tame inflation

Question 31

# 4 Describe the Winter of Discontent 1978-79

Answer 31

* Gravediggers in Liverpool, dustmen piled rubbish in street * **29.5m working days lost to strike** * Gallup poll in Jan 1979 found 84% people felt unions held too much power * The Sun: 'Crisis? What Crisis?'

Question 32

# 2 List the major social legislation passed under Wilson and Callaghan

Answer 32

* Wilson - 1975 Sex Discrimination Act * Callaghan - 1976 Race Relations Act

Question 33

Describe the prevention of terrorism Act 1974

Answer 33

Temporary measures to conduct checks on people crossing Irish Border

Question 34

# 2 Describe economic positives under Callaghan

Answer 34

* 1977 budget surplus used to buy up dividends in North Sea Oil * IMF loan not fully utilised - not needed due to Callgahan's economic steadiness

Question 35

# 3 Describe the 1973 Northern Ireland Boorder Poll

Answer 35

* 99% in favour of NI remaining constituent part of UK * Turnout of 59% * Nationalist boycott

Question 36

# 4 List the reasons for the problems in NI in the 1970s

Answer 36

* Counter-insurgency policy (internment, prevention of terrorism act 1974, Callaghan - SAS) * Hardline unionist attitudes * Nationalists (e.g. border poll, paramilitary) * Economic/political mainland issues detracted attention