Selsdon manifesto and U-turn Flashcards
(14 cards)
Why did Edward Heath perform a U-turn in his economic policies?
Tax cuts and a hands-off approach caused a stagnant economy and rising unemployment.
What was the Selsdon Park Conference?
A January 1970 meeting where Conservatives developed a manifesto focused on tax reform, law and order, trade union reform, immigration controls, and public spending cuts.
What was the core idea of the Selsdon Manifesto?
A hands-off economic policy letting the UK economy fix itself, while still not fully rejecting the post-war consensus.
Name two reforms introduced under Heath before the U-turn.
Raised school leaving age to 16 and introduced decimal currency.
What economic issue triggered the U-turn in Heath’s policies?
Unemployment approaching 1 million.
What was the ‘Barber Boom’?
- A period of rapid inflation following tax cuts and increased public spending under Chancellor Anthony Barber
- It was a U-turn to the Selsdon manifesto
What was the goal of the Barber Boom?
Encourage investment and achieve a 5% growth target between 1971–73.
What economic phenomenon emerged from the Barber Boom?
Stagflation – rising inflation without economic growth or employment increase.
What was Heath’s original economic policy motto at the Selsdon conference?
“Setting the people free” – cutting public expenditure, lowering taxes, and not supporting “lame ducks.”
How much was added to ‘public sector borrowing’ during the U-turn (basically how much spending)?
£3.4 billion.
What was the result of the U-turn in terms of unemployment?
Unemployment was halved by 1974.
What followed the inflation caused by the Barber Boom?
A deflationary budget introduced 15 months later to counteract the inflation.
When was the Selsdon Park conference?
Right before 1970 election, the cons discussed policies
What did the wage freezes in the Barber boom lead to?
Miner’s strikes
