Wilson and the Labour Governments 1964-70 Chapter 5 Flashcards
Give a brief overview of the Labour government between 1964 and 70.
1964 October - General election victory - 317 seats, 4 seat majority.
Late 1964 - George Brown’s National Plan launched - founds DEA.
1966 March - Labour re-election - 363 seats, 100 seat majority.
1967 November - Devaluation crisis + Rejection of Britain’s second EEC application.
1970 June - Wilson government defeated in general election - winning 287 seats.
How was Harold Wilson viewed at the beginning of the Labour government?
-He (and Labour more generally) was seen as more in touch with social and cultural trends.
-He promised that Britain would catch up with the ‘white heat’ of technological change.
-This led to Wilson turning a 4 seat majority in 1964 to a 100 seat majority in 1966.
How was Conservative leadership comparing to Wilson during the early years of the Labour government?
Though Douglas-Home was replaced as Leader of the Opposition by Edward Heath, who was seen as more modern, Heath was no match for Wilson.
Wilson was a better political tactician and was able to portray a confident image to voters. Contrastingly, Heath was seen as stiff and as lacking personality.
What was Harold Wilson’s early life like?
-Born 11th March 1916 in Huddersfield.
-Died 23rd May 1995 in London.
-He was the son of a chemist and teacher.
-At age 8 he visited Downing Street.
-Educated at Jesus College, Oxford.
-He initially studied History, but switched to PPE and was seen as a great public speaker.
-He attended a grammar school for secondary education.
What was Harold Wilson’s early political career like?
-Entered parliament in 1945 during the Attlee government for Labour.
-Under Gaitskell, he served as Shadow Chancellor (1955-61) and Shadow Foreign Secretary (1961-63).
-He became leader of Labour after Gaitskell’s death in 1963.
-He was originally a Bevanite and resigned over prescription charges.
-He was a moderate socialist and on the left of the Labour Party.
What was Wilson’s public image like and how did this contrast to his private life?
In the public eye, he was seen as classless, far removed from Eden, Macmillan and Douglas-Home. He was relaxed in public (a pipe smoker) but was self-conscious and insecure over his leadership.
This was reflected in his reliance on a personal team of trusted advisers who he often pitted against each other to remain in power, those advisers coming from the civil service and government.
What general reforms were there under Wilson’s government (1964-70)?
-His government supported backbenchers in liberalising laws on censorship, divorce, abortion and homosexuality, abolishing capital punishment.
Crucial steps were also taken to prevent discrimination of women and ethnic minorities and his government founded the Open University.
Why was economic modernisation necessary in Britain by 1964?
Britain’s economic growth was lagging behind Japan, West Germany and the USA and the affluence of the post-war boom wasn’t reflected in productivity or growth rates. Britain was trapped in the ‘stop-go’ cycle. Prosperity led to inflation, with runs on the pound and regular crises over the balance of payments.
How much deficit did Labour inherit in 1964? What were the two obvious solutions?
They inherited around £800 million of debt, the two main suggested solutions being devaluation or deflation.
What would deflation and devaluation have done to the economy in 1964?
-Deflation would support the value of the pound, preventing inflation. This would be a return to ‘stop-go’ and some feared it would prevent Labour from advancing welfare and technology.
-Devaluation would make imports more expensive and exports cheaper, helping the balance of payments. It would make Britain weaker globally as it would have to withdraw from certain areas globally.
Who was James Callaghan?
-Entered parliament in 1945 as the MP for Cardiff.
-Appointed Chancellor in 1964 by Wilson, made Home Secretary in 1967 and also held Foreign Secretary.
-Associated with the right wing of Labour but had excellent links to trade unions.
-Succeeded Wilson as Prime Minister (1976-79).
What was Wilson’s solution to the economic problems facing Britain?
-He chose careful management and planning.
-A new Department of Economic Affairs was set up, led by George Brown (DEA).
-Brown set up growth targets and devised an national system of ‘economic planning councils’.
-Brown also set up a voluntary agreement with wages and prices with industrialists, trade unions and civil servants.
-The aim was to secure the restraint necessary to curb inflation which the government would need to end ‘stop-go’.
Who was George Brown?
-Born 1914, died 1985.
-Came from a working class trade unionist background and on the right of the Labour Party.
-He had many shadow cabinet roles and was deputy leader of Labour from 1960-70.
-He was defeated by Wilson in the leadership election of 1963.
-Many saw him as unpredictablee with a serious alcohol problem and he frequently clashed with the cabinet.
-Resigned after a row with Wilson.
What came of Brown’s economic proposals?
-Little came of the policies.
-There was not united governmental support.
-Brown and the DEA were in competition with Callaghan and the Treasury.
-Some blamed Brown as he was impulsive and sometimes inconsistent.
-Some blamed civil servants of the Treasury and Bank of England who undermined his efforts - refusing to pass over papers and even tapping his phone.
-In 1966, Wilson moved Brown to the Foreign Office and the DEA was abandoned in 1967.
What was implemented by the government instead of the DEA?
A prices and incomes policy.
-This was done to keep inflation down.
-Implemented by a Prices and Incomes Board.
-There was a sterling crisis in 1966 caused by the National Union of Seamen that limited this work.
What happened in the Sterling crisis of 1966?
-The National Union of Seamen went on strike.
-Wilson responded harshly, defeating them but receiving backlash for his response by those on the left.
-Frank Cousins resigned from the cabinet over this.
What happened to the sterling in 1967?
Another crisis occured, caused by the Six Day War in the Middle East, affected oil supplies and oil prices increased.
A major dock strike in August 1967 also affected the balance of payments.
What did the government do in response to the tanking of the sterling in 1967?
The government devalued the pound by 14% to $2.40 USD. Labour also made defence cuts, introduced purchase restrictions and higher interest rates. It looked similar to the ‘stop-go’ scheme.
What happened two weeks after the devaluation of the pound?
The second application to join the EEC was rejected. The application was made for economic reasons as Wilson was lukewarm abour Europe and much of Labour opposed the EEC. In conjunction with devaluation, their policies seemed futile to the public.
Who replaced Callaghan as Chancellor of the Exchequer in 1967, bringing about economic growth?
Roy Jenkins.
What did Roy Jenkins do to fix the economy?
-Used deflationary methods - raising taxes and tightened government spending in all areas, prioritising the balance of payments.
-The tough measures made the government unpopular but by 1969, Jenkins achieved a balance of payments surplus, although inflation was still at 12% between 1969-70.
What did economic improvement by Roy Jenkins make Labour think about the upcoming 1970 election?
It made them confident of victory.
Who was Roy Jenkins?
-Born 1920, died 2003.
-Son of a Welsh miner.
-Entered parliament in 1950 as a Labour MP.
-Served as Home Secretary 1965-67 and as Chancellor 1967-70.
-He was strongly pro-EU and considered to be on the right of Labour.
-He founded the Social Democratic Party in 1981 who merged with the Liberal party in 1988 to form the Liberal Democrats.
What was the attitude towards trade unions during the post-war consensus?
Since the war, all governments had seen it essential to maintain full employment and keep unions. Polling at the time suggested 60% had a favourable attitude towards trade unions.
What position did Wilson give Frank Cousins in 1964?
He made him Minister of Technology.
Why were relations with trade unions deteriorating in 1966/67?
Strikes by seamen and dockers were dealt with harshly by the government.
Many of these strikes started with ‘wildcat’ strikes that had no support from national leadership.
What policy did Edward Heath announce in response to the deterioration of relations with trade unions under Labour?
‘Fair deal at work’
