Economic policies

Question 1

What was the National plan and when was it?

Answer 1

1964 - Brown placed in charge of DEA - set growth targets - aim was to secure restraint needed to prevent inflation to avoid ‘stop-go’ cycle

very few targets met by 1967 so it was abandoned

Question 2

What was the prices and incomes policy?

Answer 2

Bought in by gov to keep inflation down - by implementing prices and incomes board
–> sterling crisis 1966 caused by strike of seaman and dockers - gov defeated strike but many shocked by Wilson’s attitudes towards the strike
–> Frank Cousins resigned over incomes policy - relationship between gov and unions began to break down

Question 3

What was Devaluation and when was it?

Answer 3

1967 - $2.80 to $2.40
- outbreak of war in middle east and oil supplies were affected
- Wilson believed industrial troubles were the reasons for an increase in Britain’s trade deficit which led to an IMF loan

Question 4

What did Roy Jenkins do when becoming chancellor?

Answer 4

Implemented deflationary methods - raised taxes and tightened up gov spending - top priority to improving balance of payments
- made gov unpopular but methods worked