wilson and the labour governments

Question 1

1964 election

Answer 1

• labour seemed to be in touch w social + cultural trends
• campaign focused on tech modernisation - ‘white heat’
• 1966 election victory consolidated labours position futher
• wilson more charismatic than heath

Question 2

wilsons ideology + leadership

Answer 2

• initially appeared to be on left of labour - previously bevanite
• on other hand, did seem to be against left e.g. supported nuclear deterrent, trade union reform
• aim for modernisation, reflected in self - e.g. yorkshire accent, against old etonian pms
• relaxed + skilful performer on tv

Question 3

kitchen cabinet?

Answer 3

• wilson relied on trusted advisors
• informal discussions in downing street - reinforced suspicions of party rivalries?

Question 4

what were the econ issues labour inherited from the conservatives?

Answer 4

• By 1964, widely accepted that britain lagging behind e.g. west germany + japan
• Affluence of pw boom not reflected in productivity or growth rates
• Still trapped in cycle of stop-go, bursts of prosperity always leading to inflation, runs on the pound + balance of payments crises
• Reorganising econ to break out of cycle = main goal of WIlson’s gov
• Labour inherited deficit of £800 million

Question 5

what were the two solutions to the deficit?

Answer 5

deflation or devaluation

Question 6

pros + cons w deflationary approach?

Answer 6

• Would support the value of the pound + prevent inflation
• Deflation = stop go approach labour wanted to avoid
• Fears would mean labour would forgo manifesto promises of extra welfare + tech spending

Question 7

pros + cons of devaluing pound?

Answer 7

• Would make imports more expensive + help exporters by making british goods cheaper in other countries, would help balance of payments issues
• But would make brit appear and be weaker in world, as would have to scale back international activities
• Wilson feared labour party would gain rep of party of devaluation, as had already devalued pound under atlee 1949

Question 8

how did wilson think he could avoid devaluation/deflation?

Answer 8

through careful planning - Dept. of Economic Affairs (dea)

Question 9

aims of the dea

Answer 9

• Led by George Brown
• Set growth targets + divided national system of ‘economic planning councils’
• Tried to est voluntary agreement abt wages and prices with industrialists, trad unions + civil servants
• Aim was to secure restraint needed to prevent inflation rising which gov would then need to stop w controls
• In this way stop-go cycle of 50s could be avoided

Question 10

why did brown’s dea proposals come to nothing?

Answer 10

-Did not have united gov support - dea in competition w/ callaghan + orthodox economists at treasury
- Some blamed browns impulsivity + inconsistence
- Others blamed old fashioned + anti-labour civil servants
- Maybe real problem was political; wilson trying to please too many people, instead of appointing right people for job
- Wilson moved brown to Ministry of Foreign Affairs + DEA abandoned 1967

Question 11

purpose of the prices and incomes policy?

Answer 11

(Implemented by a Prices and Incomes board) to keep down inflation

Question 12

consequences of national union of seamen strike 1966

Answer 12

• caused sterling crisis
  -govt defeated strike, but many on left shocked by wilsons critical attitude towards strikers
• In aftermath, trade unionist Frank Cousins resigned from cabinet over incomes policy
• Relationship between govt + unions starting to break down

Question 13

what did govt do when decided devaluation only option?

Answer 13

• -pound dropped by 14% to 2.40 us dollars
  Labour also:
• made defence cuts
• introduced hire purchase restrictions
• higher interest rates

Question 14

consequences of late devaluation

Answer 14

• such deflationary policies looked little different from the tory stop-go policies
• Labour had tried so hard to avoid devaluation that devaluation crisis damaged its credibility
• economic policies seemed futile, particularly when eec application rejected 1967

Question 15

how did roy jenkins improve the econ situation?

Answer 15

Jenkins used deflationary methods:
- Raised taxes
- Tightened up govt spending in all areas of econ, top priority given to improving balance of payments
- These tough measures made govt unpopular
But, by 1969, jenkins had achieved balance of payments surplus
(though inflation still running at 12%)

Question 16

evidence of good relation w trade unions

Answer 16

• pwc recognised need for full employment
• 1960s opinion polls, 60% had favourable view of unions
• mac + wilson relied heavily on union cooperation when brought in prices + income policies
• 1964 wilson made unionist frank cousins minister of technology, kept good relationship w TUC

Question 17

evidence of decline in good relations

Answer 17

• relations began to fall apart 1966-67
• striked by seamen + dockers caused problems for gov’t
• wildcat strikes - uncontrolled
• heath + conservatives announced A Fair Deal At Work policy
• wilson + barbara castle start planning to use law to limit unofficial strikes

Question 18

three radical aspects of in place of strife:

Answer 18

1. 28 day cooling off period before strike went ahead
2. gov’t would impose settlement when unions were in dispute
3. strike ballots would be imposed
   & industrial relations court would prosecute those who went against rules

Question 19

reactions to in place of stife proposal

Answer 19

VOTERS liked proposal, labour’s standing in polls went up

UNIONS = LABOUR LEFT hated proposals
- storm of protest from unions + mps
- 50+ mps ready to rebel
- potential party split

Question 20

end of row over ipos

Answer 20

wilson finally gave in after months of row

TUC negotiated face saving compromise 1969
- everyone knew humiliating backdown from govt

Question 21

examples of domestic policies

Answer 21

• The 1963 Robbins report on higher education was implemented, by 1966 there were seven new universities: East Anglia, Kent, York, Essex, Lancaster and Warwick.
• Colleges of advanced technology were given extra funding for expansion
• Many Scientists were employed as government advisors
• Roy Jenkins, Home Secretary from 1965 promoted liberalisation
• Capital Punishment was abolished in 1965
• A new race relations act was passed in 1965 addressing racism and discrimination- this could be seen as a step forward however it was weak legislations as it only made racial discrimination a civil offence rather than a criminal one.

Question 22

Research + development:

Answer 22

Britain had produced many able scientists and had an impressive list of post-war Nobel prize winners.

Britain had led the way in computer technology in the 1940s and Lyons Restaurants had developed the first business computer in 1951.

Among Britain’s ‘firsts’ were the TSR2 (a swing-wing plane begun in 1959), the Harrier vertical take-off jet, the hovercraft, fuel injection for car engines (1966), the Anglo-French Concorde project and the non-violent use of nuclear energy.

Question 23

Tony Benn

Answer 23

Labour MP between 1950 and 2001

Cabinet minister under Harold Wilson and James Callaghan in the 1960s and 1970s

Situated on the party’s hard left, ideologically a democratic socialist

Opposed to British membership in European Community
Pushed for more state ownership (in contrast to Wilson!)