End of Conservative Dominance 1962-1964 Flashcards
Britain’s economic failures
Never really happened, failure to join EEC
West Germany war far ahead in terms of productivity and and trade
1961 Economic status
Living standards were still rising but hadn’t been able to stop spell of stop-go economics
Problems of excessive imports and rising wages remained
What was the ‘pay pause’ and what were the outcomes?
Introduced by govt. in 1961 to try and stop inflation
These deflationary measures were unpopular and the Tories lost several by-elections which meant that the Liberal party benefited and there was a 27% swing away from Tories
Macmillan and IMF
Had to ask for loan from International Monetary Fund
Along with balance of payments crisis which is where there more money being spent on imports (going out) than there is coming from exports, creating a deficit
What was the National Economic Development Council?
Set up in 1962 to try and get cooperation between govt. employers and unions
Maudling (Chancellor of Exchequer) tired policy of ‘expansion without inflation’ or ‘dash for growth’
This failed and balance of payments deficit continued to rise and stagflation occurred
Beeching report
1963, recommended huge cuts in Britain’s rail network which prompted public outrage and showed serious concerns about economic modernisation for Britain
Summary of economic problems
Declining trade 'Stop' phase of stop-go economics IMF loan Balance of payments crisis Rejection of EEC Decolonisation and failure to modernise
The Night of the Long Knives
1962 Macmillan was having trouble controlling his govt. so launched brutal cabinet reshuffle in which he sacked 7 senior ministers with the aim of freshening his stale govt. but ended up just weakening it
What was the outcome of The Night of the Long Knives?
Macmillan was acting from a point of desperation rather than power, but had he not reshuffled then things could’ve been much worse, it allowed him to implement his new economic strategy under Maudling which won him back some votes
What was the Profumo Affair?
Macmillan’s defence secretary, John Profumo was rumoured to have had an affair with 19 year old dancer Christine Keeler in 1961
Keeler also had Russian lover Ivanov who was essentially a Russian spy and Profumo was in charge of Britain’s military secrets at time of Cold War so this posed a huge security threat
What was the outcome of the Profumo Affair?
Despite charges of attempted espionage, it was never confirmed that Ivanov had attempted to use Profumo or Keeler as an access agent
It still weakened Macmillan’s position as PM as it made him look out of touch because Macmillan had originally backed his defence secretary
Macmillan and The Establishment
By 1963, Macmillan seen as old and tired, he was 70
He was seen as hugely undemocratic and made govt. easy target for satire and they became nicknamed ‘The Establishment’
Vassall Spy Affair
John Vassall was a gay clerk who worked at the Admiralty, was photographed in Moscow by KGB at a gay sex party and was uncovered as a spy
Vassall was a conspicuous consumer living for beyond his means, yet nobody had asked where his money had come from
There was much speculation about a wider homosexual and traitorous network
Macmillan’s resignation
Resigned in the middle of Tory Party Conference in October 1963 due to ill health
Scramble for power after Macmillan
No clear successor and there was strong opposition to both Rab Butler and Lord Hailsham so Douglas-Home was deemed the ‘least bad’ option and was asked to for a govt. by the Queen
This was seen as undemocratic and made the Tories look like they belonged in the bygone era whereas Labour had Harold Wilson
