the sixties 1964-70 Flashcards
(155 cards)
L18 - Why did Labour win the October 1964 election?
Conservatives began to lose popularity due to being associated with the establishment and scandals
Wilson created a modern image for his campaign relying on science and technology
Wilson is from a common background so is relatable
Stop Go is inconsistent under the conservatives
Youth are more independent and the conservative ideas are out of touch with them
They had a majority of 4 votes, 317. Only won because conservatives lost support and ti went to Liberals instead, their votes increased from 1959 election
What is Wilson’s ideology?
Promised a ‘dynamic first 100 days’
Wants change as PM
Scientific revolution, Britain is going to be forged in the white heat, need a leading stance by investing in science
He had left and right elements so unified the party. Left - resigned with Bevan and challenged Gaitskell for leadership in 1961. Right - served in gaitskells cabinet and supported the nuclear deterrent and to reform Trade unions
What are some economic problems in 1964?
Balance of payments £800mil
Unemployment 873,000 by 1963
Aimed to end stop go due to inflation
Lack of investment so nationalised industries suffer
Manufacturing decline, stagflation by 1963.
Behind economics of USA, Japan, west Germany
Changing from industrial to post industrial as manufacturing industries were shrinking and service and finance ones grew.
Solution 1: deflation
Wage freezes and increased interest rates to reduce spending to increase value of currency.
Helps BOP as exports are cheaper and imports dearer
Prices are cheaper so demand increases
Helps to combat inflation
But
Continues with Stop go
Unemployment
Solution 2: devaluation
Deliberate downward adjustment of a currency’s value
Helps BOP as exports are cheaper and imports dearer
Wages aren’t affected so demand stays
But
Deliberate adjustment done by government makes them look bad and have poor economic management
Labour did it in 1949 aswell so they look like the party of devaluation
What was the DEA and national plan 1965?
Wilson and Callaghan wanted to avoid both solutions.
So department for economic affairs headed by George Brown was set up. Devised National Plan signed by government, industry and TUs.
National plan aimed to stimulate production and exports by encouraging co-operation between these 3. Annual growth of 3.8%. End stop go
Why did NP and DEA fail by 1967?
Brown and DEA faced hostility from Treasury, another ministry.
Role of DEA overlapped with that of the Treasury so civil servants didn’t know who to listen to
Brown was compulsive, lacked consistency, alcoholic.
Trade unions became more left wing and difficult to work with through the NP. Strikes etc
Wilson was busy elsewhere to help
What was the Concorde?
English and French agreement in 1962. Share resources to develop a supersonic aircraft. Faster than the speed of sound. Exemplified white heat of technology
How was department of education and science strengthened?
More funding for expansion
1964, Robbins Report on higher education was implemented: 7 new universities by 1966, more scientists as government advisors
L19 - what were the results of the March 1966 snap election?
Labour won 364 seats majority of 98. Called snap election to increase this as they were unstable and could risk losing the government
How did Labour win the 1966 election?
Heath replaced Home in the opposition in 1965 but wasn’t as popular as Wilson. Labours manifesto of Time for Decision emphasised labour’s achievements in the last 18 months and focused on modernisation with a national transport plan and an ambitious house building programme, appealing to the public. The conservatives manifesto focused on old ideas, no new fresh ideas.
What is industrial relations?
Relationship between the government and trade unions
How did industrial relations decline?
Trade unions strikes and created economic problems for Wilson
What did James Callaghan introduce in 1966?
Prices and incomes policy, which limited price rises and wage increases to 3.5% to address inflation
What happened with government spending?
It was cut and taxes were increased. Frank cousins resigned and Labour left were disappointed and TUs hated it
Who went on strike on 16th may 1966 and what happened?
National Union of seamen. Aimed to get higher wages and reduce working week from 56 to 40 hours. Caused great disruption to shipping. The disruption of trade damaged Britain’s BOP, that exports worth £40mil were delayed by the strike as dead ships blocked ports. It provoked a run on the pound and threatened the 3.5% plan. Ended on 1 July 1966.
What were the consequences of the strike?
Wilson was critical of it and blamed communists for it who were trying to bring him down. His tactics split the Labour Party into left and centrists. Wilson had to go to the IMF for a loan in 1967 and blamed the industrial troubles for Britain’s increasing balance of payments deficit.
When was the pound devalued?
November 1967 it dropped by 14% to $2.40, whereas before it was $2.80
Wilson informed the public on TV and tried to justify it by saying the British pound is still the same in the country.
What does the devalued pound now mean?
Cheaper for countries to buy from Britain, exports
More expensive for Britain to buy from other countries, imports
So BOP will correct itself and Britain will make greater profit and be more productive
What were some arguments against devaluation?
Foreign travel is dearer
Imported goods will be more expensive and a potential shortage of goods
Makes government look incompetent
Why did devaluation damage labour?
Wilson delayed and dramatised by announcing on TV. If he did it earlier, could have been seen as a financial adjustment. Appears as a major failure economically and politically. James Callaghan resigned.
Wilson blamed trade unions for the economy.
What did Wilson apply to?
EEC in may 1967. Backed by conservatives and liberals but not by 36 Labour MPs. Rejected in November. It was a lukewarm application. Now they can’t freely trade.
Who replaced Callaghan as chancellor?
Roy Jenkins in 1967. He pursued a tight fiscal policy. Introduced deflationary methods to increase taxation and decrease government spending. By 1969, there was a BOP surplus of £387 mil, but it made government unpopular.
What was the 1969 white paper of ‘in place of strife’
Growing number of wildcat (strikes without union leaderships authorisation) strikes. Paper proposed that union members were balloted and that members would have to agree by a clear majority to have a legal strike. There would be a 28 cooling off period before a strike could happen so the government could prepare and an industrial relations court was set up to prosecute people. Popular with public but 50 Labour MPs were ready to rebel and Callaghan was.