Wilson and the Labour Governments Flashcards
s2
was wilson on left or right of labour
had been a bevanite
served in gaitskells cabinet
supported nucelar deterrent
wanted to reform TUs
seen as classless
what did wilson wanto to do to the british economy
modernise
what approach did labour want to break away from
stop go, devaluation and deflation
what new economic dept was set up
DEA
what were browns economic proposals
establish agreement abt wages and prices with TU leaders and industrialists
When was the DEA abandoned?
1967
what replaced DEA
prices and incomes policy
due to the outbreak of a war, the gov had to…
devalue the pound, higher interest rates, cuts (looking like stop go)
which trade unionist resigned from labour after wilsons attitude to the strikers
frank cousins
which strikes caused economic problems for the gov
seamen and dockers
who produced in place of strife
barbara castle
in place of strife included ( union restrictions)
28 day cooling off period
industrial relations court
strike ballots could be force
due to in place of strife, the gov had to negotiate with…
the TUC
gov hindered by lack of expertise in which area…
tech development
how did wilson unite the party
after gaitskell and bevans death, he emerged as a conciliatory leader
who did wilson fear
brown, callaghan and jenkins
why was NI created
the irish war of independence
what did unionists and nationalists believe
unionists supported the union with britain
nationalists support a united ireland
majority of people in NI were_____ and majority in Ireland were _______
protestant
catholic
who were attacked on the annual march
apprentice boys
What was a key priority for Labour?
- Modernising the British Economy.
- Reorganising the economy so that it was no longer stuck in a cycle
By what point was it widely accepted that Britain was lagging behind other countries such as West Germany and Japan?
1964
What was the balance of payments deficit Wilson inherited?
£800 million
What was the british economy stuck in?
- A cycle of “stop-go”.
- Bursts of prosperity always led to inflation.
- Runs on the pound.
- Regular balance of payments crises.
What were the traditional responses to the balance of payments crisis that Wilson and Callaghan were faced with?
Deflation or devaluation
Why did Wilson and Callaghan not want to undertake a policy of deflation?
- This would be the old “stop-go” approach that labour wanted to break away from.
- There were fears that it would stop Labour from meeting its manifesto commitments to spending on welfare and technology.
Why did Wilson and Callaghan want to avoid devaluation?
- It would make Britain look weaker.
- It would make Britain actually weaker as it would have to scale back its activities across the globe.
- Labour would gain a reputation for devaluation after Attlee devalued the pound in 1949.
How did Wilson believe economic problems could be solved?
Careful management and planning.
Department of Economic Affairs.
- 1964
- Set growth targets.
- Devised a system of “economic planning councils”.
Who led the DEA?
George Brown
What was the aim of the voluntary agreement?
- To secure the restraint needed to prevent inflation rising, which the government would then need to stop with controls.
- This would break the”stop-go” cycle of the 1950s.
George Brown
- Working-class trade unionist.
- On the right of the party.
- Defeated by Wilson in the 1963 leadership election.
- Seen as unpredictable and had a serious alcohol problem.
- Resigned in 1968 after a row with Wilson.
What did Brown and Callaghan’s squabbling mean?
The DEA was failing because the treasury wasn’t cooperating with it.
Why might the anti-Labour civil servants be blamed for the failure of the DEA?
- They undermined Brown’s efforts.
- They refused to pass over papers and tapped his phone.
What was another key problem with the DEA?
Political.
- Wilson was trying to keep key personalities happy rather than picking the best team for the job.
When was the Brown moved to the Ministry of Foreign Affairs?
1966
Prices and Incomes Policy
introduced by Wilson in 1965 in an attempt to keep inflation down.
Set limits on price rises and called for wage restraints in negotiations between Unions and Employers.
When was there another sterling crisis?
1966
When did Wilson’s government declare a state of emergency due to the Seamen’s strike?
23rd May 1966
What harsh measures did Wilson use to end the strike?
- Red Scare tactics- named “politically motivated men” involved in the strike, including Communist Party Organisers and people who were not members but were “in continual contact” with the others.
Who did Wilson’s critical attitude to strikers shock?
The labour left.
Who resigned from cabinet over the incomes policy?
Trade Unionist Frank Cousins
What sterling crises did Labour survive?
1965
1966
When was there a major national dock strike?
August 1967
How much was the pound devalued by?
14% to $2.40 USD
What else did Labour do in response to the 1967 sterling crisis?
Made defence cuts.
- Introduces hire purchase restrictions and higher interest rates.
What did the rejection from the EEC immediately after the devaluation crisis do?
Made labour’s economic policies look futile.
What was Jenkins in favour of in 1964?
Devaluation
What were Jenkins’ deflationary methods?
- Raising taxes.
- Tightening up government spending in all areas
- Giving top priority to improving the Balance of payments.
What was the Public reaction to Jenkins’ economic measures?
They were unpopular
When did Jenkins achieve a balance of payments surplus?
1969
What percentage of people said in opinion polls they had a positive view of Trade Unions in the early 1960s?
60%
When did Wilson make Trade Unionist Frank Cousins Minister of Technology?
1964
Prices and Incomes Policy
- 1965
- Government intervention to set limits on prices and to call for wage restraint in negotiations between unions and employee.
What did the growth of wildcat strikes started by local activists demonstrate?
That old-style Union bosses were losing some of their power.
What did Roy Jenkins in term of the labour’s technological inabilities?
that he had difficulties undertsnaidng breifings because of his non-scientific mind.
When did Tony Benn take over as the minister of the Minister of Technology
in 1966
What changed after Tony Benn?
The department performed better, but in some ways all labour’s domestic policies were overshadowed by economic problems
What projects did Britain pursue?
The Supersonic plane Concorde which it developed in partnership with the French government, it could not compete with the US.
Why could Britain not compete with the US?
the US spent vast government sums on research and development
What key labour issue remained after 1964?
The divisions between the left and right of the labour party.
What happened after the death of Bevan?
Gasitkell the leader of the right and Wilson emerged and conciliatory leader of the party.
What did Wilson concentrate on?
concentrated on the labour party as part of the technological modernisation
How did labour’s technological modernisation unite the party?
it minimised the underlying tensions such as that over clause IV
