Wilson’s Government, 1964-70 Flashcards
When did Hugh Gaitskell die?
Jan 1963
How did Wilson present himself to the electorate?
- Down to earth
- Yorkshire accent
- Smoked with a pipe (working class), not a cigar
- Contrast himself with aristocratic Douglas-Home
- First PM to have gone to a state secondary school
How much debt did the Wilson govt inherit in 1964?
£800m
Why didn’t Wilson want to use deflation in the 60s?
Part of the stop-go cycle which he had promised to end. Wouldn’t fix underlying economic problems.
Why didn’t Wilson want to devalue the pound in the 60s?
Would make imports more expensive, but would make exports cheaper.
Unpopular and made Britain appear weak.
Wilson didn’t want to make devaluation the “typical Labour policy” after Attlee had had to do it in 1949.
What was the DEA and who led it?
- Department of Economic Affairs
- Led by George Brown
- Set growth targets and established regional “economic planning councils”
Why did the DEA fail?
- Competition with treasury. Chancellor James Callaghan actively sabotaged the DEA.
- Brown was an alcoholic and very impulsive
- Had no real authority.
Abolished in 1967.
What was the big strike in 1966?
The National Union of Seamen (NUS). Wanted reduction from 56hr week to 40hr week.
Govt defeated the workers but it caused a sterling crisis.
Left of party shocked by Wilson’s anti-worker rhetoric. Trade unionist Frank Cousins resigned in protest.
What two crises in 1967 were the triggers for devaluation?
- Six-Day War between Israel and Arab states. Affected oil supplies.
- Another big NUS strike in August.
By how much was the pound devalued in 1967?
14%, down to $2.40
Who succeeded Callaghan as Chancellor?
Roy Jenkins. Followed deflationary policies, like defence cuts and higher interest rates.
Also brought in higher taxes and lower spending.
How was the economic situation by 1969?
- Jenkins reached a balance of payments surplus
- Inflation remained high at 12%, however.
What did In Place of Strife propose?
- 28-day cooling off period before strikes.
- Ballots with majority of all union members required
- Govt could impose settlements in “demarcation disputes” where two unions disagreed.
Why did In Place of Strife fail?
- Voters and many Labour MPs (inc Jenkins) supported the proposals
- But, despite being proposed by “Red Queen” Barbara Castle, the left and the unions hated the legislation and considered it an attack on workers.
- Jack Jones (leader of Transport and General Workers’ Union) protested. Around 50 MPs prepared to rebel.
In what ways was Wilson paranoid as party leader?
- Always saw other prominent figures as a threat.
- Wilson suspicious of Jenkins (centrist/Gaitskellite) and his liberal legislation
- Jenkins proposed devaluation during the 1966 seamen’s strike. Wilson saw this as a leadership challenge, and thought there could be a coup to replace him with a Jenkins/Callaghan coalition.
- This was unreasonable because Jenkins and Callaghan had very different views on devaluation, In Place of Strife, etc. and weren’t planning to oust Wilson.
