Chapter 2- Wilson and the labour governments 1964-70 Flashcards
(41 cards)
What were the reasons for the conservatives all from power in 1964?
- Youthful Image of Wilson, labour campaign was based around Wilson who was seen as a man of the people
- Illness of Macmillian, very ill following a major operation in 1963 later resigned due to ill health
- Douglas-Hone was seen as part of the establishment after he replaced Macmillian
- Labour party seen as a party of modernisation, more scientist and criticised stop-go politics
- after series of scandals (Burgess+Mclean, 1962 Cuban missile crisis and profumo affair) people disapproved of the establishment.
- imports 20% higher than exports. Britain’s EEC membership rejected in 1963.
- Night of the long knives 1962, Macmillian reorganising his cabinet put him in a precarious position
What were the term factors influencing outcome of the 1964 election?
The youthful image of Wilson and Wilson being presented as a man of the people. Labour party focusing on modernising Britain, many people felt the conservatives were old fashioned and wanted change.
issues with balance of payment, imports 20% higher than exports.
What were the short term causes for outcome of 1964 election?
Illness is Macmillian that eventually made him resign in 1964. He was replaced with Douglas Home who was seen as part of the establishment.
Scandals that happened just before the election reinforced people’s ideas that the conservative party was old fashioned.
What was the key turning point for the outcome of the 1964 election?
Macmillan reorganised his cabinet in a event that became known as the night of the long knives.
It emphasised Macmillan’s reliance on ministers who supported his ideas. This reshuffle made Macmillan’s own position more precarious.
What was Harold Wilson’s ideology?
On the left of the Labour Party. Had been a bevenite, resigning in 1950 over prescription charges.
Supported Britain’s nuclear deterrent and attempted to reform the trade unions.
Successfully linked the labour party to modernisation. First prime minister educated at state secondary school. However he was anxious and insecure about his leadership, paranoid about potential rivals.
What economic problems did labour inherit in 1964?
Modernisation- key priorities right catch up to countries like Germany and Japan.
Productivity- The affluence of the post-war boom had not been reflected in the productivity or growth rates. Britain’s economy was trapped in a stop-go cycle with bursts of prosperity often leading to inflation, runs on the pound and crises over balance of payments.
Deficit- Labour had inherited a deficit of £800 million.
What is productivity?
efficiency, E.g., getting more produced per worker in this way costs are reduced and profits are increased
What is ‘run on the pound’ ?
A term describing a rapid fall in the value of the pound in international currency markets.
What is ‘stop-go’ economics?
Low interest rates and rising consumer spending results with the economy overheating. The government slow this down by higher interest rates and spending cuts.
What were the 2 solutions Labour had to solve the economic problems of 1964?
Devaluation- much talk about lowering the pound in order to make it more competitive, would encourage people to buy from Britain. It would make imports more expensive and make Britain look weaker. Make British good cheaper and encourage exports, helping with balance of payments. Wilson feared that labour party would get a reputation of devaluation as it already had before under Attlee in 1949.
Deflation- would make labour appear similar to the conservatives. support the value of the pound and prevent inflation. Fears that it would stop Labour party from meeting its manifesto commitments of extra spending on welfare and technology.
What was the DEA and how successful was it?
Set up by George Brown, devised a national system of ‘economic planning councils’. He tried to establish voluntary agreement about wages and prices with industrialist and trade union leaders. The aim was to secure the restraint needed to prevent inflation rising which the government would then need to stop with controls. Therefore the ‘stop-go’ cycle could be avoided.
However they did not have united government support. Brown and DEA in competition with James Callaghan and orthodox economists at the Treasury. DEA was abandoned in 1967. Harold Wilson could have been trying to keep personalities happy rather than pick the best team for the job.
What was the prices and income policy and how successful was it?
Prices and income policy was a attempt to keep down inflation, implemented by the Prices and Income Board.
Government intervention to set limits on price rises and to call for wage restraint in negotiations between unions and employers.
What happens to industrial relations after 1964?
Another sterling crisis in 1966 caused the National Union of Seamen to strike. Government defeated this strike however people in Wilson’s party where shocked at Wilson’s critical attitude to strikers and Trade Unionist Frank Cousins resigned from cabinet over the incomes policy. Relationship with government and unions started to breakdown.
How successful overall were Labour’s economic policies in 1964?
Labour had tried so hard to avoid devaluation that the devaluation crisis had damaged its credibility.
Few weeks later Britain’s second application to join EEC was rejected.
When Callaghan was replaced with Roy Jenkins the economic situation started to improve. He kinda used deflationary methods, raised taxes, tightened up government spending in all areas of the economy giving top priority to improving balance of payments. By 1969 Jenkins had achieved a balance of payments surplus. Although by 1969-1970 inflation was running at 12%.
The improvement in the economic situation from 69 was a key factor in making labour confident of its victory in the 1970 general election.
what were wildcat strikes?
Wildcat strikes were strikes by local activist who would not take orders from the top.
What was Wilson’s response to the increased strikes?
Wilson and Barbra Castle started to plan to use the law to limit unofficial strikes. In January 1969 she produced ‘in place of strife’ in order to control strikes.
Who was Barbra Castle and what were the main proposals of ‘In Place of Strife’?
Barbra Castle was Wilson’s new employment minister. The main proposals of In Place of Strife were: Industrial relations court would be able to prosecute people who broke the rules and strike ballots would be imposed.
How did the trade unions respond to ‘in place of strife’?
Storm of protests from powerful union leaders such as Jack Jones, they were supported by Home Secretary James Callaghan and at least 50 labour MPs who were ready to rebel.
How was the issue of in place of strife solved?
In June 1969 the TUC negotiated a face-saving compromise but everyone knew it was a humiliating climb down by the government.
What were the key disagreements in the labour party in 1960?
Economic- George Brown & Roy Jenkins disagreement on Devaluation of the pound. Jenkins wanted to stimulate exports by devaluing,however, this would have a impact on spending at home as prices would rise.
Attitudes to modernisation- Many ministers had little scientific understanding.
Trade unions- Attempts to reign in the unions from Barbra Castle with ‘in place of strife’ and White Paper. Attempted to regulate unions by proposing a ban on wildcat strikes, cooling off period where unions had to wait 28 days before striking.
Who were Wilson’s personal rivals in his cabinet?
Wilson feared a leadership challenge from Brown or Callaghan or Jenkins.
Brown was hugely resentful that he had lost the leadership election to Wilson and was further disappointed that he was not made foreign secretary in 1964.
Wilson was also suspicious of Jenkins, a Gaitskellite. Did not support Jenkin’s liberalising legislation as home secretary. When the seamen strike of 1966 caused a sterling crisis Jenkins tried to get cabinet to support devaluation.
Wilson was paranoid Callaghan and Jenkins would work together to replace him however this was highly unlikely as Callaghan did not approve of Jenkins liberalising legislation. Jenkins was a supporter of the trade union legislation that Callaghan helped to block.
What were the consequences of the divisions in the labour party in the 1960s?
Wilson spent too much of his energy and attention trying to keep the party happy and united and in stopping any of his colleagues from being able to threaten his position.
What were the beginning of the ‘Troubles’ in Northern Ireland?
- NI created in 1922 after Irish war
of Independence - Ireland partitioned between 6 counties in the North that would remain part of the UK and 26 other counties that would be Irish free state.
- partition was extremely controversial led to civil war with unionist supporting union with Britain and nationalist supporting a unites Ireland.
- Majority of people in Ireland catholic but in NI majority protestant
- Belfast parliament dominated by protestant unionists
How were Catholics discriminated against in NI in the 60s?
Catholics had been discriminated against in employment, housing and electoral boundaries deliberately brought in to prevent catholics from being elected. Accusations RUC (Northen Irish police force) has been biased against catholics. Civil rights marches held in 1968 to protest against discrimination, however they were attacked by loyalists.
