Heath 1970-74 Flashcards
What were some of the benefits of being part of the common market?
- Trade became much easier because there were no tariffs within the EU.
- As was the purpose of the EU, war was less likely due to the ties that every country had with each other.
- It gave Britain a better chance of attracting foreign investment because doing business in the UK meant that they could do business cheaply within the EEC.
- British regions were able to receive European development grants.
What were some of the disadvantages of being part of the common market?
- Britain were unable to use the special privileges they’d previously had to trade with the Commonwealth. Buying produce from there had been very cheap.
- As the wealthiest country in the EEC, Britain had to pay large contributions, amounting to 20% of what the countries gave altogether per year.
Reasons for the Arab oil crisis 1973
Most Arabian countries reduced their supply of oil to countries which they believed had sided with Israel in the Arab-Israeli war in 1973. They also increased the price of oil.
Consequences of the 1973 Arab oil crisis for Britain
- The value of the pound sterling dropped from $2.00 to $1.57.
- Inflation increased to 16%.
- The balance of payments deficit rose to £1 billion.
- Unemployment rose dramatically, reaching 1.44 million by 1977.
Was Heath successful in handling the trade unions?
- In 1972 the total number of days lost to strikes reached 23,909,000.
- There were over 2,000 strikes every year from 1971-1974.
Industrial relations act 1970
It was an attempt to control the unions, including:
- Restrictions on the striking rights of workers
- Compulsory registration to a government register if unions wanted to keep their legal rights
- Powers given to courts to decide whether a strike was valid.
Why was Heath elected?
-Heath was elected Prime Minister in 1970 with a Conservative majority of 30 seats.
Heath won the election based on:
~ Effective campaigning
~ Internal divisions in the Labour party
~ Wilson’s inability to resolve trade union disputes or explain
~ Labour’s economic policies
(Post-war consensus: The general alignment of the main political parties on major issues from 1945 until the 1970s)
Heath’s view on post-war consensus
Heath wanted to end the post-war consensus of state intervention and reduce the role of government, promising to be tough on pay, tough on unions, and prioritise full employment.
However, Heath was faced with the end of the post-war boom which led to an economic and political crisis.
Selsdon man conference 1970
- Heath argued that the government should interfere less with people’s lives and the economy in order to provide them with the freedom to further themselves.
- He said he’d reduce intervention in wage and pay settlements and would put controls on trade unions to reduce their dominance.
- Core ideology of the ‘New Right’ was formed
- Wilson criticised it, saying it was ‘uncaring’ because it would involve cutting government spending which would make the poor suffer.
Confrontation with the miners 1970
- National Union of Miners (NUM) called for strike in 1972 to protest closure of mines as well as to demand wage increases.
- Caused serious disruption to fuel and electricity supplies, and industrial productivity.
- Heath’s government imposed strict fuel restrictions, they did not win the strike.
This led to the three day week
Barber boom
- Chancellor Anthony Barber attempted policies that led to short-lived economic expansion.
- Involved policies such as lowering income tax by £1 billion/giving tax concessions to industries in attempt to help workers retain jobs.
- But, this led to rise in wage inflation/confrontation with labour unions
Joining the EEC 1973
- In 1957, the EEC was formed to establish a free trade area between member states.
- Britain had not been successful so far, largely due to the influence of the French President Charles de Gaulle.
- The UK finally became a member in 1973, during Heath’s office, after De Gaulle retired.
U-turn 1972
- The government would return to controlling prices/incomes to combat inflation.
- Reverted to policies of post-war consensus, bringing end to New Right plan to liberalise the market/reduce government intervention in economic affairs
What was the impact of the U-turn?
~ Heath lost support from those who favoured New Right policies
~ Labour used it to show failure of Conservative ideology
The ‘troubles’ in Northern Ireland
Series of conflicts - Over whether or not Ireland should remain part of the UK.
~ Conflict between unionists/republicans.
~ Unionists believed they should remain part of UK and were Protestants.
~ Republicans, Catholic, believed they should be part of a united Ireland.
~ The IRA was committed to creating a united Irish republic through violence.
~ British army entered Northern Ireland in 1969 violent clashes began.
Bloody Sunday 1972
- Londonderry, 13 unarmed civil rights demonstrators - shot dead by British Army paratroopers.
- Protesters, all Northern Catholics, marching in protest of the British policy of internment of suspected Irish nationalists.
- Bloody Sunday precipitated upsurge in support for IRA, which advocated violence against the UK to force withdraw from Northern Ireland.
