Economic Stats 1970-74 Flashcards
What was the Industrial Relations Act and what did it do
1971
Extension of “In place of strife”
Restricted right to strike
Introduced new concept of “unfair industrial practice”
National Industrial Relations Court established to judge validity of strikes
Required unions to join a government charter to retain legal rights
Who was the head of the department of trade and industry
John Davies- advised government against supporting lame ducks
Who was appointed Chancellor and what did he do
Anthony Barber
Income tax cuts
Reductions in gov spending
Scrapping Prices and Incomes board
Cuts in subsidies to local authorities
Deflationary budget inc wage freezes
1972 budget effects
Pumped £2.5billion into economy
Compared to Kwarteng budget
Helped contribute to GDP fall of 2.5% in 1974
Inflation by end of 1971
15%
Rollback of New Right Policies
1971- nationalisation of Rolls Royce
1972- Heath announced return to controlling prices and income
Subsides granted to Upper Clyde Shipbuilders
How much was given to the upper Clyde shipbuilders
£34 million
How did the Number of strikes change between 1971 and 1974
1971- 2,228strikes
1974- 2,922 strikes
When was the oil crisis and how did the price of oil change
1973
$2 a barrel to $35 a barrel
Economic affects of oil price rose
Balance of payments defecit rose to £1 billion
Inflation hit 16%
Value of sterling fell to $1.57
Interest rate reached 15%
Unemployment doubled to 1.44 million between 1974-76
How did commodity prices change 1971-74
Rose 160%
When did fixed exchange rates end and impact this had
1972
Sterling lost value
When did Britain join the EEC
Signed Treaty of Rome 1972, became full member NYD 1973
Advantages of EEC membership
Gained access to European markets
Benefitted from final end of wartime antagonisation
Stood to attract global business as part of European bloc
British regions entitled to EU development grants
Right to work in other EEC nations
Greater freedom of movement
Disadvantages of EEC membership
Loss of special economic relationship with the Commonwealth and the CAP resulted in higher food prices
Britain made more contributions to EEC than it received
Common Fisheries policy restricted British fishing rights
Britain had to impose VAT on commodities
Protectionist organisation- possibly dated in era of global markets
