1970-74 Flashcards
(31 cards)
Finance Act
1971 - Allowed husband and wife’s earning to be taxed separately
Employment Protection Act
1975
- Employers had to offer maternity leave
Sex Discrimination Act
1975
- Illegal to dicrimminate on ground of sex in employment, education, housing, banking etc
Social Security Act
1975
- Provided a special maternity allowance fund
Social Security Pensions
1975
- Required Pension schemes to be open to both men and women if they are doing the same work
Heath’s aims
- drift away from post war consensus
- Be pro-market and anti Keynesian
- Adopt the “Selsdon Man” approach as articulated at the conference at Selsdon Park in Jan 1970
- Not to bail out “lame ducks”
Industrial Relations Act 1971
- Extension of “In Place of Strife”
- NIRC (National Industrial Relations Court) established to judge validity of strike action
- DTI (department of trade and industry) is headed by John Davies, he represented British manufacturers and industrialists
Initial economic policy
The most able minister, Iain Macleod, dies only a few weeks in and is replaced by Anthony Barber
- Income tax cuts
- Reductions in gov spending
-Scrapping of the PIB
- Cuts in subsidies to local authorities
- Withdrawal of free school milk for schoolchildren
This leads to the “Barber boom” of inflation but no growth. Unemployment reaches 1 million in 1971 leading to stagflation
Heath’s U Turn
- In 1972 gov announces it is going to control income and wages again
- Gov nationalises Rolls-Royce in 1971
- Gov bails out Upper Clyde Shipbuilders
Heath’s experience
- 5 years as leader of opposition
- Chief negotiator 61-63 for joining the EEC
School Leaving Age Change
Up to 16 in 1972
Decimalisation
1971
What disputes does Heath inherit from Wilson?
dustmen, postal workers, dockers and power workers
Who strikes in 1972 and how many days are lost
ambulance drivers, civil servants, power workers, hospital staff, firefighters. Use of flying pickets when miners strikes begin on 9th jan
23.9 million days lost to strikes in 1972
When does Heath declare 3 day week + consequences
- 9th Feb
- Schools Close
1.2 million workers end up unemployed
1972-73 crisis
- Wilberforce Committee set up to investigate miners demands but sides with miners
- Miners get 21% pay rise
- Heath does another U-turn with the 1972 Industry act - gov works with CBI and TUC in sorting out wages
- HOWEVER in 1973 unemployment has fallen to 500,000 off the back of gov investment in industry
-BUT OPEC nations impose oil embargo
Consequences of Yom Kippur War
- Oil prices quadruple immediately
- Cost of oil rose from $2 to $35/barrel from 1973-1980
- BoP deficit rose to £1 billion
- CPI rose to 16%
- Value of sterling dropped to $1.57
- Interest rate raised to 15%
- Record budget deficit
Second 3 day week 1974
- Encouraged by oil crisis the miners demand a large pay rise and overtime ban in November 1973
- Wilson appoints moderate Willie Whitelaw a Employment Secretary to negotiate
- Heath imposes 3 day week again to take effect in Jan 1974 in preparation for another miners strike
- Compromise not achieved the miners reject offer and NUM call a national strike
Impact of 2nd 3 day week
- Speed limit of 50mph to discourage driving
- Fuel is rationed
- Cuts made to heating and lighting of public buildings
- TV stops at 10:30pm
Local Government Act
Delivered by Peter Walker in 1973
- Reduced administrative regions
- People on right view it as an attack on local identity
British entry into Europe
- De Gaulle steps down in 1969
- Signed Treaty of accession in 1971
- Becomes a member on 1st Jan 1973
- Heath had staked his reputation on it
Members of the EEC knew that Britain could not survive economically without joinin
- Australia and NZ now had a European tariff placed on their exports to England
Advantages of EEC membership:
- Gained access to European markets tariff free
- More appealing for business investment
- British workers could go and work in other EEC states
- Greater freedom of movement
Disadvantages of joining EEC
- No more cheap food from Commonwealth - tariff
- Britain had to contribute more than it recieved
- CAP raised cost for Britons
- Tariffs on other states could make inflation worse
February 1974 Election
Hung Parliament, Heath can’t agree terms with liberals so Labour take a minority government
