Wilson's Government's, 64-70

Question 1

When Wilson entered in 64, how did he seem to the general population?

Answer 1

In touch with the social and cultural mood, ‘govern in the white heat of the new technique’.

Question 2

What was his ideology and leadership like?

Answer 2

Ex-Bevanite - resigned in 1950 over prescription charges.
Served under Gaitskell.
Cons tendencies - supported nuclear deterrence and attempted to reform TUs.
Successfully modernised Lab Party - managed to mostly separate Labour from Attlee’s austerity Lab Govs.

Question 3

What was Britain’s economic growth in 1964?

Answer 3

2.4%, Japan led the world at 9%.

Question 4

What was Britain’s economy stuck in?

Answer 4

Stop/Go, Wilson’s key economic aim was to break this.

Question 5

What BOP deficit did Wilson inherit?

Answer 5

800M

Question 6

What was Callaghan’s position and view on devaluation/deflation?

Answer 6

Chancellor of the Exchequer, and he didn’t support either devaluation or deflation.

Question 7

What was the cost/benefit of devaluation?

Answer 7

Would make exports more expensive so Br benefit with that, but would make Br weaker on the global stage.

Question 8

What was the DEA and who set it up?

Answer 8

Department for Economic Affairs under George Brown.

Question 9

What did the DEA aim for?

Answer 9

They aimed to secure the restraint needed to slow inflation. They tried to establish voluntary agreement about prices and wages with industrial leaders. They ultimately failed because of Callaghan’s opposition. Wilson was too scared of a potential leadership challenge to take a side.

Question 10

What was Wilson’s Prices and Incomes policy?

Answer 10

To standardise the prices of essentials in shops, and to standardise wages - the first Minimum Wage.

Question 11

What were the relations with TUs like?

Answer 11

Bad - after the 1966 National Union of Seamen Strike which meant that imports/exports ground to a halt.

Question 12

In August 1967, what was the exchange rate that forced Wilson to devalue?

Answer 12

£1 = $2. This looked to the public like a continuation of the S/G policies, weakening his fiscal credibility.

Question 13

What event following the devaluation further weakened his credibility?

Answer 13

Application to join EEC rejected.

Question 14

When Jenkins became Chancellor after Callaghan resigned over develuation, what was his initial effect?

Answer 14

Raised direct taxes and tightened government spending. He made the government unpopular but there was finally a BOP surplus. Inflation was still at 12%, however he made Wilson seem very electable through the economic success.

Question 15

What were relationships with the TUs like?

Answer 15

He was relying on union cooperation with his P&I policy, but industrial relations deteriorated in 1966/67. Wildcat strikes by dock workers and seamen was an economic hit. 1969 - In Place Of Strife.
Callaghan and 50 others almost rebelled, forcing Wilson to sign an embarrassing agreement.

Question 16

What was the Wilson-Jenkins division?

Answer 16

Despite Wilson uniting the party with modernisation, personal rivalries between Brown, Jenkins and Callaghan split the party. Wilson feared he would lose an election to all 3 of them. Brown was resentful he had lost the leadership elected to Wilson, and Wilson didn’t support his liberalising policies.

Question 17

What was the Callaghan-Jenkins division?

Answer 17

Callaghan didn’t approve of Jenkin’s economic policies or his pro-Europe stance. Jenkins criticised Callaghan’s failure to devalue and was a key supporter of some of the TU legislation that Callaghan blocked.

Question 18

What was the effect of the divisions on the Party?

Answer 18

Wilson devoted too much time and energy towards fighting divisions, and too little time worrying about the country.

Question 19

What was Wilson’s main move for Northern Ireland?

Answer 19

In 1969 he sent peacekeeping troops to Dublin, Belfast and London/Derry.

Question 20

How can we see the end of the PWC?

Answer 20

By 1970 there were disagreements over economics, Heath felt he was better suited to handle economic issues. TUs being uncooperative almost forced Labour to reform TU legislation. Left of Labour dissatisfied with policies. Heath was starting to doubt Lab policies also, and whether or not the state should take on an active role in the economy.

Question 21

Why was the loss in the 1970 election a surprise?

Answer 21

Jenkins had stabilised the economy and Wilson was considered to be a master campaigner.

Question 22

What were the Cons strengths going into the 1970 election?

Answer 22

Labour’s position was fragile, Wilson had had setbacks (devaluation, EEC), Powells ROB speech meant some voters liked Cons attitude towards immigration. Others believed Heath’s actions shows he was strong and principled. Heath was confident of winning.