The End of the Post-War Consensus 1970-79

Question 1

What did Heath do to the Conservatives as leader?

Answer 1

He reformed the party, reducing the influence of its traditional aristocratic leadership and promoting colleagues on merit

Question 2

Who were two notable members of Heath’s cabinet

Answer 2

Anthony Barber - Chancellor
Margaret Thatcher - Education Secretary

Question 3

What key idea was Heath influenced by, and what did this promote?

Answer 3

The thinking of the New Right
It promoted less government intervention, allowing market forces to decide wages and prices

Question 4

What was the ‘Selsdon Man’ and where did the name came from?

Answer 4

A new type of Conservative voter who wanted more control over their own affairs
Came from the conference at Selsdon Park 1970 - where the ideas of the New Right were laid out

Question 5

What were two examples of the government abandoning its commitment to less intervention?

Answer 5

• Rolls-Royce, the main producer of aircraft engines, was nationalised in 1971
• Upper Clyde shipbuilders received a subsidy of £35 million to stay afloat

Question 6

What economic disaster occurred in 1973?

Answer 6

OPEC oil crisis

Question 7

Why did the OPEC oil crisis happen?

Answer 7

OPEC (Organisation of Petroleum Exporting Countries) supplied oil for much of the world
The Yom Kippur War broke out in October 1973 between Israel, and Egypt and Syria
OPEC reduced it’s supply of oil and prices went up 4x

Question 8

What were some effects of the oil crisis?

Answer 8

• Imports became more expensive and the value of sterling was further reduced
• Inflation grew to 16% by 1974
• Unemployment doubled from 700k in 1973 to 1.6 million by 1978

Question 9

What was the basis of the 1974 election?

Answer 9

Heath’s statement - ‘Who governs Britain?’, referring to the trade unions having lots of power

Question 10

Who won the 1974 election?

Answer 10

There was no clear majority, but Labour were able to govern with the help of the Liberals

Question 11

What policy did the government introduce in 1971 in Northern Ireland?

Answer 11

Internment - the ability to arrest without trial

Question 12

What was Bloody Sunday and when did it happen?

Answer 12

January 1972
British troops opened fire on Catholic protesters in Londonderry, killing 14
The IRA retaliated with the beginning of bombing on mainland Britain

Question 13

What did the British government do following Bloody Sunday?

Answer 13

Suspended the Stormont parliament and adopted direct rule from Westminster

Question 14

Who was the Secretary of State for Northern Ireland?

Answer 14

Willie Whitelaw

Question 15

What did Whitelaw introduce in December 1973 and what did it do?

Answer 15

The Sunningdale Agreement
Attempted power sharing between the Catholics and Protestants through the formation of a new executive with representatives from both communities

Question 16

What was the reaction to the Sunningdale Agreement?

Answer 16

Hard-line Protestants, influenced heavily by Reverend Ian Paisley, organised a 15 day strike - defeating the agreement

Question 17

What was a key problem with reforming industrial relations?

Answer 17

Most strikes were unofficial, and industrial power could be called through a show of hands, making it difficult to control

Question 18

What did Heath do to address the problems with reforming industrial relations?

Answer 18

Passed the 1971 Industrial Relations Act

Question 19

What did the Industrial Relations Act state?

Answer 19

• A National Industrial Relations Court was set up to judge the validity of any strike
• Unions had to register and could face fines if industrial action was deemed unwarranted

Question 20

What was the response to the Industrial Relations Act?

Answer 20

• The unions refused to co-operate
• They refused to register or acknowledge the Industrial Relations Court
• The Act was a failure and was dropped

Question 21

What did the failure of the Industrial Relations Act lead to?

Answer 21

• A free-for-all in terms of industrial relations
• Numbers of strikes grew from 228 in 1971 to 2873 by 1973

Question 22

Who was the most threatening trade union to the government?

Answer 22

National Union of Miners (NUM)

Question 23

What were the miners principally striking about?

Answer 23

• The closure of mines
• Improved pay

Question 24

What techniques did the miners use, and what did their strikes lead to?

Answer 24

• Primarily used mass rallies to blockade coal distribution centres to prevent movement
• Led to a 21% wage increase in 1973, which they then challenged for further increase the following year

Question 25

What caused fuel shortages in Britain?

Answer 25

- The oil crisis - The rejection of a 13% pay offer by the miners - A ballot on a national strike

Question 26

What did these fuel shortages lead to?

Answer 26

The imposition of a three-day working week

Question 27

What did the three-day week include?

Answer 27

- Shortened TV hours - Power cuts - Encouragement for people to share baths

Question 28

What is the main reason the Conservatives lost the 1974 election?

Answer 28

Their economic record, rather than their disputes with the miners

Question 29

What was the economic situation by 1974?

Answer 29

Both unemployment and inflation were rising

Question 30

How did Labour take power in 1974?

Answer 30

With the support of 14 Liberal MPs

Question 31

What economic issues continued under Labour in 1974?

Answer 31

- Commodity prices increased by 160% between 1971 and 1974 - Sterling fell in value following the the ending of fixed exchange rates in 1972 - Upon joining the EEC in 1973, Britain had to phase out better tariffs with the Commonwealth, and introduce the Common Agricultural Policy (CAP). This increased food prices

Question 32

What social measures did the Labour government introduce to combat inflation?

Answer 32

- Repealed the 1971 Industrial Relations Act - Ended statutory wage and prices controls - Expanded welfare provision and nationalisation Known as the Social Contract

Question 33

Who was Labour's Chancellor throughout this period?

Answer 33

Denis Healey

Question 34

What did measures Healey include in his first budget?

Answer 34

- Increases in pension benefits - Food and housing subsidies to help the poorest in society - Higher taxes and cuts to the defence budget to finance these

Question 35

What was the result of these measures?

Answer 35

Economic problems mounted - The budget deficit grew - The National Enterprise Board was set up in 1975 to invest in any firms, not just failing ones, however it concentrated on those in trouble to save jobs

Question 36

What are 2 examples of businesses the National Enterprise Board concentrated on?

Answer 36

- Invested heavily in British Leyland in 1975 - Nationalised shipbuilding and British Aerospace in 1976

Question 37

What was the economic result of these reforms?

Answer 37

Strikes fell, but inflation grew (16% in 1974 - 24% in 1975)

Question 38

What key economic event occurred in 1976?

Answer 38

With the deficit continuing, Britain had to apply to the IMF for a loan

Question 39

How big was the loan that Britain applied for?

Answer 39

£3 billion

Question 40

What caused an increase in industrial tensions?

Answer 40

Union leader Jack Jones retired and Moss Evans took over, who was less supportive of the Social Contract

Question 41

What are some examples of industrial tensions under Callaghan?

Answer 41

- Ford workers gained a pay rise of 17% in Autumn 1978 - Lorry drivers brought the transport network to a halt due to a strike before receiving a 20% pay rise - Finally, low paid public sector workers went on strike

Question 42

What was the result of these industrial issues?

Answer 42

The Winter of Discontent

Question 43

List some examples of what happened in the winter of discontent?

Answer 43

- Binmen strike in London - rubbish stacked up in Leicester Square - Gravediggers strike in Liverpool

Question 44

What was Callaghan's major political error in the late 1970s?

Answer 44

He failed to call an election in Autumn 1978, which he most likely would have won, as it was before the Winter of Discontent

Question 45

What majority did the Conservative's win by in 1979?

Answer 45

70 seats

Question 46

Who was assassinated in 1979 by the IRA?

Answer 46

Lord Mountbatten in August 1979 He was related by marriage to the royal family and a famous Establishment figure

Question 47

What were the political circumstances for Labour and Callaghan before the Winter of Discontent?

Answer 47

The economy appeared to be recovering, although inflation and unemployment were still high Callaghan himself enjoyed personal popularity