Labour govts of Wilson and Callaghan

Question 1

When did the Labour govt come back into power?

Answer 1

March 1974

Question 2

What was the state of British society in March 1974?

Answer 2

The economic situation was awful, the trade unions had to be dealt with, the Northern Ireland situation was precarious, the Labour part was disunited, Wilson himself was older and less energetic and Labour had formed a minority govt which was weaker

Question 3

What was the rate of inflation in 1974?

Answer 3

15%

Question 4

What was the balance of payments deficit in 1974?

Answer 4

£3 billion

Question 5

When did Wilson call another election?

Answer 5

By October 1974 Wilson felt his majority was strong enough to call another general election

Question 6

Why did Wilson feel secure enough to call another election?

Answer 6

Voters still associated Heath and the Conservatives with the three day week and conflict with the miners

Question 7

What was the result of the October 1974 general election?

Answer 7

He only just won a majority. Labour gained 18 seats and Conservatives lost 21 but still Labour only had an overall majority of 3

Question 8

What approach did Wilson take to industrial relations?

Answer 8

He acted quickly wanting to demonstrate that Labour was better equipped than the Conservatives to work with the trade unions. There was a clear message that the government was trying to avoid confrontation

Question 9

What were the consequences of policy shifts?

Answer 9

These policy shifts worsened party divisions with left wingers like Michael Foot and Tony Benn wanting to put less pressure on unions and reducing state intervention in industry

Question 10

What did Wilson negotiate while in opposition?

Answer 10

In 1973, while in opposition he negotiated the Social Contract with the Trade Union Congress

Question 11

What agreement did Wilson negotiate to move forward?

Answer 11

An agreement was reached with the National Union of Miners which allowed Wilson to end the state of emergency and the three day week.

Question 12

Who did Wilson put in charge of departments?

Answer 12

He put Tony Benn and Michael Foot in charge of the departments of industry and employment.

Question 13

What did Wilson’s new chancellor do?

Answer 13

Wilson’s new chancellor Denis Healey issued new budgets in March and then in July aiming to deal with the economic crisis and avoid annoying the unions. In January 1975 Chancellor Denis Healey made a speech in Leeds impressing the need to control public spending and warning that wage inflation caused unemployment. In April 1975 Healey’s budget increased taxation and cut public spending

Question 14

What caused a surge in inflation?

Answer 14

There was a surge in inflation following large wage increases that were deemed necessary to get out of the industrial crisis that brought down Heath

Question 15

What was the NEB?

Answer 15

In 1974 the National Enterprise Board was set up under Tony Benn to administer the government’s share holdings in private companies and give financial aid.

Question 16

Describe issues around government subsidy

Answer 16

The government’s decision to nationalise failing car manufacturer British Leyland caused renewed controversy over government subsidy of lame duck industry.

Question 17

Did the social contract work?

Answer 17

The social contract was failing to limit wage demands so in 1975 a more formal pay restraint policy was introduced

Question 18

When did Wilson resign?

Answer 18

He suddenly resigned as Labour leader in March 1976

Question 19

Who was Wilson’s successor as PM?

Answer 19

James Callaghan

Question 20

Was Callaghan seen as a good candidate for PM?

Answer 20

He was seen as a ‘safe pair of hands’ as he had lots of experience and good links to unions. He was an ideal leader to maintain party unity

Question 21

What put pressure on the sterling throughout 1976?

Answer 21

The balance of payments crisis

Question 22

What was feared about Britain’s economy?

Answer 22

There were concerns that Britain didn’t have enough reserves of currency to support it

Question 23

What was Callaghan’s famous speech of September 1976?

Answer 23

He gave a speech to the Labour Party conference where he warned the party that the ‘cosy world’ where the government could ensure full employment was good. He said productivity would need to improve to avoid ‘the twin evils’ of unemployment and inflation

Question 24

Why did Callaghan make the cosy world speech?

Answer 24

To prepare the Labour Party for the government’s plan to apply for an emergency loan from the International Monetary Fund. It feared there might be a run on the pound

Question 25

Did chancellor Healey get an IMF loan?

Answer 25

In December, the chancellor Dennis Healey received a loan of £3 billion. In return, he had to make drastic spending cuts

Question 26

How bad was the economic situation?

Answer 26

It was not as bad as feared. Callaghan handled the IMF crisis well and the economy recovered. But it reinforced the idea that Britain was in economic decline

Question 27

What were people's thoughts about the IMF loan?

Answer 27

Labour left saw it as caving into international financiers and a betrayal. Callaghan managed to maintain unity but there was some leftist militancy in trade unions and local councils

Question 28

When did the economic situation improve?

Answer 28

The situation began to improve as North Sea oil came on stream.

Question 29

How many oilfields were in production by 1978?

Answer 29

9

Question 30

What had inflation fallen to by 1978?

Answer 30

10%

Question 31

How many people were unemployed by 1978?

Answer 31

1.6 million

Question 32

What was the number of industrial disputes by 1978?

Answer 32

It had fallen to a ten year low

Question 33

How long did the labour majority in the House of Commons last?

Answer 33

It had dissappeared by 1977

Question 34

How did Callaghan strengthen the government?

Answer 34

By forming the 'lib-lab' pact, it enabled him to defeat a vote of no confidence tabled by the Conservative Party

Question 35

What did the lib lab pact mean?

Answer 35

12 liberal MPs agreed to vote with the government and in return Callaghan promised to move forward with devolution for Wales and Scotland

Question 36

What were opinions about devolution?

Answer 36

Scottish and Welsh nationalists supported it but most Conservative MPs, and many Labour MPs opposed it

Question 37

What legislation introduced devolution?

Answer 37

The 1978 devolution Acts for Scotland and Wales opened the way for referendums but the terms deliberately made it unlikely. At least 40% of the electorate had to approve devolution for it to pass

Question 38

What was the outcome of the devolution referendums?

Answer 38

The referendums were held in March of 1979. Wales voted conclusively against and in Scotland although a majority voted in favour, it was not 40% of the electors, so it was defeated. Disappointed Scottish nationalist MPs then withdrew their support for Labour

Question 39

What did the TUC do in the autumn of 1978?

Answer 39

They rejected the Labour government's proposed wage increase limit of 5%. This led trade unions to up their demands

Question 40

What did Ford lorry drivers achieve from their strike?

Answer 40

A 15% increase in December after a 9 week strike

Question 41

When did a period of industrial unrest climax?

Answer 41

The winter of 1978 to 1979

Question 42

How serious was the winter of discontent?

Answer 42

It was not on a massive scale and did not pose as serious a challenge to govt as the Miner's strike of 1974

Question 43

When did industrial disputes come to an end?

Answer 43

March 1979

Question 44

What was the average pay increase achieved by the strikes?

Answer 44

10%

Question 45

What was the state of British society in the run up to the 1979 general election?

Answer 45

The political landshape had been reshaped by the winter of discontent. Britain's economy had deteriorated, the reputation of the trade unions had been damaged and even many skilled/ unskilled workers began to consider voting Conservative

Question 46

When did the government lose a vote of no confidence?

Answer 46

In March 1979 on the issue of Scottish devolution. The govt was then forced to resign

Question 47

What strengthened the Conservative's 1979 election campaign?

Answer 47

The media and press were dominated by images of the 'winter of discontent. Most of the press eg The times, the sun and the mail supported the conservatives. They focused on issues like unemploymentment, law and order, and the excessive power of the unions. The conservatives also benefitted from a sharp drop in support for the Liberalss and for the Scottish Nationalist Party

Question 48

What was the result of the 1979 general election?

Answer 48

A comfortable majority of 43 seats for the conservatives

Question 49

When did the Sunningdale agreement collapse?

Answer 49

May of 1974

Question 50

When did the blanket protest begin?

Answer 50

October 1976

Question 51

Who high profile was killed by an IRA car bomb in March of 1979?

Answer 51

Airey Neave, the conservative spokesman on Northern Ireland killed by an IRA car bomb in the House of Commons car park

Question 52

What was the Ulster workers council?

Answer 52

It was set up by a shipyard worker, Harry Murray and tried to bring down the executive. They announced a strike in May of 1974

Question 53

What happened in the ulster worker's council strike?

Answer 53

It severely limited power and telecommunications and the British government declared a state of emergency. Within a fortnight Faulkner resigned as the chief executive of the power sharing executive. Wilson reimposed direct rule and the Sunningdale agreement collapsed. Wilson then established the Northern Irish Constitution Convention to determine the future of govt in Northern Ireland

Question 54

What did the elections to the Northern Irish Consititution convention lead to?

Answer 54

The elections of July 1975 resulted in a unionist majority who opposed power sharing, meaning an agreement with nationalists was off the cards.

Question 55

When was the Northern Irish Consititution convention dissolved?

Answer 55

1976

Question 56

Describe special category status

Answer 56

From 1976 special category status was removed from terrorist prisoners, so they were no longer political prisoners and instead were criminals

Question 57

What were opinions over special category status?

Answer 57

Paramilitaries disliked its removal as they believed they were engaged in a war

Question 58

What was blanket protest caused by?

Answer 58

The removal of special category status meant they had to wear prison uniforms so they engaged in a 'blanket protest' to fight against

Question 59

When did the blanket protest escalate?

Answer 59

In 1978 to a dirty protest. Republican prisoners alleged ill treatment by prison gaurds and refused to leave their cells

Question 60

How many people were taking part in the protest?

Answer 60

By 1979 over 250 prisoners took part and demands grew for them to regain their political status