1964 - 1979 Flashcards
(30 cards)
1
Q
Why did Labour win the 1964 general election?
A
- Conservative decline after 13 years (‘Thirteen Wasted Years’)
- Profumo Affair scandal
- Douglas-Home’s aristocratic image
- Wilson’s modern persona
- Liberal revival split anti-Labour vote
2
Q
What personal qualities made Harold Wilson popular in 1964?
A
- Grammar school education, Yorkshire roots
- Strong communicator
- Appealed to both working and middle-class voters
3
Q
What social changes in the 1950s helped Labour in 1964?
A
- loss of respect for authority
- Rise of youth culture
- Labour positioned as progressive and modern
4
Q
What key economic problems did Labour inherit in 1964?
A
- £800 million balance of payments deficit
- Rising inflation 4%
- Poor industrial relations
- Low productivity
5
Q
What was the 1965 National Plan?
A
- Economic strategy by George Brown’s DEA
- Aim: 25% growth by 1970
- GDP growth only averaged 2.3% annually
6
Q
Why did the National Plan fail?
A
- Over-ambitious growth targets (3.8% per year) were unrealistic
- lack of cooperation from unions and businesses
- conflict with treasury
7
Q
Why did Wilson devalue the pound in 1967?
A
- To tackle trade deficit; Devaluation from $2.80 to $2.40
- ‘The pound in your pocket’ phrase mocked
- Seen as economic mismanagement
8
Q
What was the impact of devaluing the pound?
A
- Made UK exports cheaper and more competitive, boosting export industries
- helped decrease trade deficit
- Caused import prices to rise, contributing to higher inflation and living costs
9
Q
What was ‘In Place of Strife’ (1969)?
A
- Barbara Castle’s white paper to limit union power
- Proposed strike ballots, 28-day cooling-off
- Withdrawn after TUC and Labour MP opposition
10
Q
What problems did Labour face with the unions?
A
- Wildcat strikes
- Union opposition to incomes policy
- 2,000 strikes/year
- Union membership over 9.5 million
11
Q
Why did Labour lose the 1970 election?
A
- The National Plan (1965) failed to meet targets
- strikes made labour seem weak
- devaluing of the pound
- Rising inflation (above 5%)
- unemployment nearing 600,000
12
Q
What were Heath’s goals as PM (1970–74)?
A
- Modernise economy
- Cut state intervention
- Reduce union power
- Secure EEC membership
13
Q
What was Heath’s initial economic approach?
A
- Free-market reforms
- End wage/price controls
- Cut public spending
- Reduce state ownership
14
Q
Why did Heath perform a U-turn in 1972?
A
- Unemployment hit 1 million
- Reintroduced subsidies like Rolls-Royce bailout
15
Q
When and how did Britain join the EEC?
A
- January 1973 under Heath
- After failed bids in 1961 and 1967
16
Q
What caused the 1972 miners’ strike?
A
- Pay demands due to increasing inflation
- Government conceded 27% raise
- 23+ million working days lost
17
Q
What was the 1971 Industrial Relations Act?
A
- Strike ballots
- 60-day cooling-off periods
- National Industrial Relations Court
- Strong union opposition
18
Q
What was the Three-Day Week (1974)?
A
- Response to miners’ strike and energy crisis
- Limited electricity use to 3 days/week
- Led to crisis
19
Q
What role did the 1973 Oil Crisis play?
A
- OPEC raised oil prices 400
- UK inflation rose from 9% to 17%
- energy costs soared
20
Q
Why did Labour return to power in February 1974?
A
- Economic crisis after the 1973 Oil Crisis and rising inflation
- Industrial unrest and miners’ strikes, led to the Three-Day Week
- Public dissatisfaction with Conservative handling of economy
- Heath’s “Who governs Britain?” election failed to win a majority
- Labour formed a minority government promising better management of strikes and economy
21
Q
What economic problems continued under Wilson after 1974?
A
- Inflation peaked at nearly 30% (1975)
- Rising unemployment
- Trade deficit
- Union unrest
22
Q
What was the 1975 EEC referendum?
A
- National vote promised by Labour
- 67.2% voted to remain
- Eased party divisions
23
Q
what was the IMF loan and when was it ?
A
- 1976
- UK borrowed $3.9 billion
- Agreed to cut £2.5 billion spending
- Seen as national humiliation
24
Q
How did Callaghan respond to the IMF crisis?
A
- Accepted loan terms
- Wage restraint
- Inflation dropped from 30% to 10% by 1978
25
What problems persisted after the IMF loan?
- Unemployment over 1.5 million
- Cuts to public services
- Deepened divisions within the Labour Party
26
What caused the Winter of Discontent (1978–79)?
- Callaghan’s 5% pay cap
- Widespread public strikes
- 29.4 million working days lost
27
What was the Winter of Discontent?
- 1978-79
- Strikes affected key services: garbage collection, hospital workers
- Workers protested against government-imposed pay caps amid rising inflation
28
How did the Winter of Discontent impact Labour?
- Perception of chaos and weak leadership
- Media criticism ('Crisis? What crisis?')
- Undermined Labour’s traditional alliance with the trade unions
- led to public viewing labour as unreliable with the economy
- Contributed directly to Labour’s defeat in the 1979 general election
29
Why did Labour lose the 1979 election?
- Rising inflation 10%+
- IMF loan
- Winter of Discontent
- Thatcher promised to restore order, cut inflation, and reduce union power
30
What was the result of the 1979 election?
- Tories: 43.9% vote (339 seats)
- Labour: 36.9% (269 seats)
