wilson and the labour governments Flashcards
wilson’s history with the labour party
originally a bevanite, resigning in 1950 over prescription charges
served in gaitskell’s cabinet#
challanged gaitskell for the leadership in 1961
critics of wilson
said he didnt seem to be of the left
- supported nuclear detterent and reform to trade unions
just an opportunist
wilson’s modern image
seen as classless
first PM educated at a state school
smoked a pipe
skillful performer on TV
wilson in private
anxious and insecure about his leadership
conscious of his rivals
kitchen cabinet
wilson relied on a personal team of advisers outside the government
modernisation of the british economy
key priority of the labour government
britain’s economy in 1964
it was widely accepted that britain was lagging behind west germany and japan
trapped in stop go
inherited a deficit of £800 million
deflation
would support the value of the pound and prevent inflation
would continue the old stop go approach
devaluation
would make imports more expensive and help exporters by making britain look weaker
labour would gain the reputation of the party of devaluation - atlee 1949
department of economic affairs
led by george brown
set growth targets
devised a system of economic planning councils
attempted to establish a voluntary agreement about wages and prices with TU
was DEA successful
NO
did not have united government support
in competition with the chancellor
why did economic reform fail
brown was impulsive and inconsistent
wilson tried to keep key personalities happy (brown) instead of picking right people for the job
prices and incomes
government brought in a prices and incomes policy to keep down inflation
implemented by prices and incomes board
sterling crisis
1966
caused by a long and bitter strike by the national union of seamen
aftermath of seamen strike
gov defeated the strike
trade unionist frank cousins resigned from cabinet over incomes policy
relationship between government and unions was starting to break down
devaluation 1967
outbreak of war in middle east affected oil suplies
major national dock strike in august
both affected the balance of payments
gov devalued the pound by 14% to £1 = $2.40