WILSON/CALLAGHAN CHAPTER 10 Flashcards
political/econ
POLITICAL, ECONOMIC, AND INDUSTRIAL PROBLEMS AND POLICIES
Wilson found himself in a much less promising position than 1964 economic situation was awful:
3 REASONS WHY
- Inflation at 15%
- Balance of payments deficit £3 billion.
- Trade unions need to be dealt with.
POLITICAL, ECONOMIC, AND INDUSTRIAL PROBLEMS AND POLICIES
Wilson found himself in a much less promising position than 1964 political situation was awful:
4 reasons
- NI situation precarious.
- Labour party less united than ever.
- Wilson older and less energetic.
- As a minority government, labour had to depend on support from other parties to get legislation through parliament.
POLITICAL, ECONOMIC, AND INDUSTRIAL PROBLEMS AND POLICIES
- October 1974 Wilson safe enough to call a new election.
why did heath lose and what majority did Wilson get?
- Voters associated Heath with the 3-day week and conflict with miners Wilson won his majority (just about) labour had 42 more seats than the conservatives, but their overall majority was just 3.
OCTOBER 1974 GENERAL ELECTION RESULTS
CONSERVATIVES
LABOUR
LIBERAL
SEATS and % OF VOTES
CONSERVATIVES 277 35.9
LABOUR 319 39.2
LIBERAL 13 18.3
INDUSTRIAL RELATIONS 1974-6
- In 1973, while in opposition, Wilson had negotiated the Social Contract
what was this?
(involved voluntary pay restraint by the trade unions – in return the government would repeal Heath’s industrial act and pay board) with the TUC.
INDUSTRIAL RELATIONS 1974-6
- Trade unions told government not looking for confrontation agreement with NUM quickly reached, and Wilson ended
which 2 things
the State of Emergency and the 3-day week.
INDUSTRIAL RELATIONS 1974-6
- Left wingers Benn and Foot put in charge oof departments of industry and employment.
- Denis Healey made Chancellor
what did he do
issued 2 budgets aiming to deal with economic crisis without annoying the unions.
ECONOMIC REFORMS 1974-6
- Problem: surge in inflation due to the rush of large increases that were deemed necessary to get out of industrial crisis that brogh down Heath.
- so in 1975,
what happened
chancellor Healey’ budget imposed steep rises in taxation and public spendings were cut.
ECONOMIC REFORMS 1974-6
- The national enterprise board (NEB) was set up in 1974 under Benn to
administer the government’s shareholdings in private companies. It could also give financial aid.
ECONOMIC REFORMS 1974-6
- 1975 - NEB’s effectiveness being questioned – the decision to nationalise
which company caused controversy
the failing car manufacturer British Leyland caused renewed controversy about the government recuing lame-duck industries.
ECONOMIC REFORMS 1974-6
- The social contract was not limiting wage demands - a more formal pay restraints policy introduced by 1975.
these shifts in policy
did what
intensified party divisions left wingers did not want to put pressure on the unions and also believed in state intervention in industry.
ECONOMIC REFORMS 1974-6
- March 1976 Wilson suddenly
did what
resigned as leader of the Labour party.
CALLAGHAN’S PREMIERSHIP, 1976-9
strengths of callaghan
2
- Had good links to the unions and seen as an ideal leader to maintain party unity.
CALLAGHAN’S PREMIERSHIP, 1976-9
- 1976 poor balance of payments putting pressure on the sterling - concerns that Britain did not have
enough reserves of currency to support it.
CALLAGHAN’S PREMIERSHIP, 1976-9
- Callaghan gave a speech where he suggested productivity needed to be improved to avoid high unemployment and inflation it was made to help prepare the party that the government was planning to
do what
apply for an emergency loan from the International Money Fund (IMF) as there were fears about a run on the pound.
CALLAGHAN’S PREMIERSHIP, 1976-9
- Healey received a loan of
how much and what did this mean
£3 billion the government had to make big spending cuts in return.
CALLAGHAN’S PREMIERSHIP, 1976-9
- Callaghan handled the IMF crisis well and the economy recovered.
however this
reinforced the image of Britain being in economic decline: conservatives denounced it as national humiliation, left wing of labour saw it as betrayal.
CALLAGHAN’S PREMIERSHIP, 1976-9
- Economic situation began to improve
3 reasons
- North Sea oil came on stream - by 1978, there were 9 oilfields in production.
- Inflation rates fell to 10%,
- unemployment was still at 1.6 million but started to fall and numbers of days lost to industrial disputes had fallen to a 10-year low.
balance of payments change from 74 to 79
3565 to 902
callaghan - DEVOLUTION
1977 – the labour majority in the house of commons disappeared – Callaghan strengthened the government by making the ‘Lib-Lab’ pact and defeated the vote of no confidence
what is that?
(a vote on whether the government is considered able to continue governing – if they lose they must call a general election) tabled by the conservative party
callaghan - DEVOLUTION
- 1977 – 12 Liberal MPs agreed to vote with Labour and in turn Callaghan promised to .
do what
move ahead with devolution (transfer of powers to a lower level of government) for Wales and Scotland
callaghan - DEVOLUTION
- 1978 the devolution act passed despite
what in parliament
debates in parliament, opening way for referendums.
callaghan - DEVOLUTION
- A labour MP opposed devolution and inserted a clause that at least
what % had to approve
40% of the electorate had to approve of devolution in order for it to pass.
RESULTS OF DEVOLUTION REFERENDUMS 1979
Scotland – turnout 62%
yes %, no%
Yes 51.6%
No 48.4%
RESULTS OF DEVOLUTION REFERENDUMS 1979
Wales – turnout 59%
yes %, no%
Yes 20.3%
No 79.7%
In Scotland, the rules stating a simple majority was not enough meant that devolution was defeated disappointed Scottish nationalist MPs
did what
withdrew their support from the Labour party – proved decisive in the aftermath of the events of the winter of 1978-9.
THE WINTER OF DISCONTENT
- In the autumn of 1978, the TUC rejected the Labour government’s proposed wage increase limit of 5%
what did this lead to (lorry driver)
unions put in higher demands – lorry drivers achieved a wage increase of 15% in December after a 9 week strike.
THE WINTER OF DISCONTENT
- More unions followed lorry drivers example - the wave of industrial action included
2 sectors
disruption to transport, and the service sector strikes led to outrage – hospital porters, dustman, and gravediggers.
THE WINTER OF DISCONTENT
The industrial unrest that gripped Britain in the winter of 1878-9 was not a serious challenge – the disputes ended in March, brought a 10% increase in pay.
BUT
effect
the psychological effect of the winter of discontent had a devastating impact on the public mood.
THE GENERAL ELECTION, 1979
- 1978 – Callaghan decided to wait and didn’t call an election - this was a mistake –
why
the political landscape had been reshaped by the winter of discontent in 1979, the economic situation had deteriorated, and the reputation of the trade unions had been damaged: many skilled and unskilled workers began to consider voting conservative.
THE GENERAL ELECTION, 1979
- March 1979 – government lost a vote of no confidence in the parliament over the issue of
Scottish devolution government forced to resign.
THE GENERAL ELECTION, 1979
- Winter of discontent dominated the press and media for weeks – most of the press supported
who and whateffect did this have
conservatives who were able to campaign mostly by hammering away at the unpopularity of labour especially on issues of unemployment, law and order and he excessive power of the unions.
THE GENERAL ELECTION, 1979
- Many of the strikes in 1979 showed the weakness of
what
old union leadership and their failure to control the new militancy of their workers.
THE GENERAL ELECTION, 1979
- 1979 election labour vote held up quite well, but conservatives benefitted from
the sharp drop of support for liberals and Scottish nationalist party.
1979 GENERAL ELECTION RESULTS
CONSERVATIVES
LABOUR
LIBERAL
SEATS % OF VOTES
CONSERVATIVES 339 43.9
LABOUR 269 36.9
LIBERAL 11 13.8
PROBLEMS OF NORTHERN IRELAND
- Although Heath had negotiated the Sunningdale Agreement with the UUP, the SLDP and the Alliance,
who were against it and what did the UUP do
both loyalists and republicans were opposed UUP started turning against it.
PROBLEMS OF NORTHERN IRELAND
- The UWC was set up to bring down the Executive
how
strike in May 1974 severely limited power and telecommunications British government declared a state of emergency.
PROBLEMS OF NORTHERN IRELAND
- Faulkner resigned as the chief executive of the power sharing Executive
what did wilson had to do
Wilson forced to reimpose direct rule.
* The Sunningdale agreement had collapsed.
PROBLEMS OF NORTHERN IRELAND
- The troubles continued and Wilson announced the establishment of a NI constitution convention
what was this
(an elected body that would determine the future of the government in NI).
PROBLEMS OF NORTHERN IRELAND
- The election in 1975 resulted in a majority for
who and what happened to the convention
unionists who were opposed to any form of power sharing - an agreement with nationalists not possible.
* The convention was dissolved in 1976.
PROBLEMS OF NORTHERN IRELAND
- 1976 - special category removed from terrorist prisoners
what did this mean
people are no longer being considered political prisoners but criminals.
PROBLEMS OF NORTHERN IRELAND
- As criminals, politcal prisoners had to wear prison uniforms refusal became known as the
who / what did they do
blanket protest by the INLA and IRA prisoners who were wither naked or wore blankets.
PROBLEMS OF NORTHERN IRELAND
- 1978 dirty protest – Republican prisoners alleged
ill treatment by the prison guards and refused to leave their cells.
PROBLEMS OF NORTHERN IRELAND
- 1979 over 250 prisoners taking part in the blanket/dirty protest & demands were growing for them to
regain their political status.
