How successful were the economic policies of the 1964-70 Labour Government?

Question 1

backround of britian’s economic difficulties in the 1960s

Answer 1

had inherited 800 million bop deficit from conservatives - lack of competetiveness

since 1949 er was £1 = $2.80

Question 2

Deflationary measures

Answer 2

• wilson didnt want to devalue due to failure of 1931 and 49 gov
• didnt want to upset us (also had bop deficit), if br devalued, currency traders would assume america is to and would start a run on the dollar
• 1964 chancellor of ezechequor jim callaghan started deflationairy measures - higher taxes on tobacco and alchohol

Question 3

National Plan

Answer 3

1965
- wilson created new ministry called dea (department of economic affairs ) september 1965

• targets - annual growth rate of 3.8% iver 6 years
  increase in exports of 5.25% to improve bop deficit
• recommendations of national plan for gov spending were undermined by treasury’s delfationairy measures

Question 4

Devaluation

Answer 4

nov 1967

• strikes caused unempoyment to be high from 64 1.7mil to 67 2.5mil
• on 18th now worth $2.40 instead of 2.80
• jenkins took over, had to employ both , tax rise by 923 mil - 1969 bop surplus