The Sixties 1964-1970 Flashcards
Who won the 1964 election ?
Harold Wilson leader of the Labour Party
What is significant about Wilsons “white heat” speech ?
-It allowed the Labour Party to enter a new era of modernisation and unity.
-Created a clear contrast between conservative and labour
-Moved labours image away from communism and towards development of technology and science.
Why was Wilsons unification of the party important in order to win the 1964 election?
-The Labour Party was a weak opposition because there were quarrels within the party between Bevanites and Gaitskellites.
-Created a more electable image.
What was Wilsons public image like ?
-He was deemed relatable due to his humble background
-he was relaxed and skilful on TV
-Smoked a pipe and had a thick Yorkshire accent
-seen to be in touch with the modern society
What was Wilsons ideology ?
-He gained support of the left and challenged Gaitskells leadership
-He supported Britains nuclear deterrent
-attempted to reform trade unions
-Wanted a more liberal society (relaxed laws around divorce, abortion, homosexuality)
What were Wilson’s political skills ?
-Passed many popular acts to create a more liberal society
-he was ambitious and optimistic
-he was a convincing politician
What was Wilson’s leadership style like ?
-He relied heavily on his trusted team of advisors from outside of govt and the civil service
-He had an inner circle of MP’s (the “kitchen cabinet”)
-he believed in unity and modernisation
who was Labour’s chancellor between 1964 and 1967?
Callaghan
who was Labour’s chancellor between 1967 and 1970?
Jenkins
What was the majority of the Second election in 1966?
96 (increased from 4-96)
What was the Balance of Payment deficit inherited from the Conservative government?
£800million
Why was the Labour Party allied to the trade unions?
Party Funding
What were some of Wilson’s economics aims?
-Reduce inflation
-Adress the balance of payments deficit through exports
-Improve the economy and make Britain more competitive
-Maintain the value of the pound ( £1=$2.80)
Why did Wilson say he would never devalue the pound?
-He was involved when labour devalued the pound in 1947 and did not want to be the man who devalued twice.
How many runs on the pound were there in 1964-1970?
7
Why was devaluation not an option in 1964?
-Fear of knock on effect in the USA (run on the $)
-Would reduce the savings of hardworking, labour voting families
-Feared devaluation would make him lose his tiny majority
What economic route did Wilson take in 1964?
Used stop and go economics:
-Increase taxes
-Limit wages
-Increase tarriffs
-Cut govt spending
What deflationary charge was brought in in the autumn of 1964?
15% charge on all imports was introduced
What were the Autumn 1964 and Spring 1965 budgets?
Increased income tax, tax on alcohol, tobacco and petrol.
How much revenue did the Autumn and Spring budgets raise?
475million
What did the government spend the revenue from the budgets on?
-Commitments to their manifesto pledges (pensions, welfare state and abolition of prescription charges)
What did Wilson do after the 1966 election which angered the unions?
-Mandatory wage freeze and prices for 6 months
Why was the Department for Economic affairs created?
To coordinate national planning to make industry more competitive.
When was the National Plan published ?
September 1965
Was the National plan extremely ambitious?
Yes
What did the National plan cover?
All aspects of britains economic developments for the next 5 years.
What did the National plan pledge?
-Increase national output by 25% by 1970
How did the National plan aim to reach a national output increase?
-Annual growth rate of 3.8% over 6years
-An increase in exports of 5.25% per year to deal with the balance of payments deficit
How many initiatives were in the National plan?
39
What board was created as part of the National plan?
National Board for Prices and Incomes
Why was the National board for prices and incomes created?
To ensure wage increases would only be granted if accompanied by increases in productivity
Were Wilson and Callaghan committed to deflation?
yes
How were measures used contradictory?
-the measures were in contradiction to the deflationary policies required to defend the value of the pound
Why was the DEA closed in 1969?
There was a lack of cooperation between Callaghan(treasury) and Brown(Dea)
Why did the national board for prices and incomes have no power to inforce its decisions?
It relied on the support of the unions who did not support wage restraints