Topic 3: Heath's government (1970-74)

Question 1

5

Describe the promises of Heath’s government in 1970

Answer 1

• A break with interventionist policies
• Market solutions would be sought
• Legal reform of trade unions to bring them under control
• Taxpayer money would no longer be spent on helping ‘lame duck’ industries
• The rejection of compulsory wage control

Question 2

6

List notable figures in Heath’s cabinet

Answer 2

• Ian MacLeod (CX) died 1 month after appointment
• Relatively unknown Anthony Barber (CX) who succeeded him
• Douglas-Home (FS)
• Maulding (HS)
• John Davies (trade and industry)
• Thatcher (Edu) - only woman in cabinet

Question 3

2

Describe Heath’s personality

Answer 3

• ‘Wooden’
• Nicknamed the ‘grocer’ for working class background

Question 4

4

Describe initial economic policies under Heath

Answer 4

• March 1971 budget
• ‘Competition and Credit Control’
• High growth
• Decimilisation in 1971

Question 5

4

Describe the March 1971 Budget

Answer 5

• Replace purchase tax with VAT
• Relaxed exchange controls
• Both prerequisites for EEC membership
• Reduction of direct taxes -> led to high levels of economic growth and low unemployment

Purchase tax - tax on luxury goods
VAT - tax placed on product at each stage of production when value is added
Exchange controls - controls imposed by govt on purchase/sale of foreign currencies

Question 6

2

Describe the liberalisation of the banking system under Heath

Answer 6

• Under title ‘Competition and Credit control’
• led to high lending and increase in money supply

Question 7

3

Describe decimilisation 1971

Answer 7

• Agreed in 1965 under Wilson
• Previously 144p in £1
• Brought in line with other European currencies

Question 8

6

Describe the problems the economy faced 1970-73

Answer 8

• Increasingly powerful trade unions
• Inflation had rose from 5% in 1969 to 10% by mid-1971
• Productivity remained low - growth rate decreased from 2.5% (1969) to 1.7% (1971)
• Record balance of payments surplus of £1bn in 1971 -> deficit of £1 billion in 1973
• Unemployment reached 1m in 1972
• Stagflation

Question 9

3

Describe initial inflationary policies under Heath/Barber

Answer 9

• Abolished Price and Incomes Board
• Reduced standard rate income tax
• Signalled age of intervention was over

Question 10

2

Describe initial deflationary policies under Heath/Barber

Answer 10

• Cuts in subsidies to council house rents and school milk expenditure (Thatcher ‘milk snatcher’)
• Signalled age of intervention was over

Question 11

2

Describe nationalisation U-turns 1970-1974

Answer 11

• Rolls Royce nationalised in 1971 - major car manufacturer and symbolic of global status
• Upper Cylde Shipbuilders nationalised in 1971 after threat of unemployment

Question 12

6

Describe the 1972 Barber Boom

Answer 12

• March 1972 budget cut taxes and inc public expenditure
• Dubbed ‘last Kenesian fling’ in Treasury
• Barber Boom pushed up growth rate to 7.4% by 1973
• Contravened Heath’s pledge to solve inflation
• Voluntary wage control was impossible to maintain in face of inflation
• Heath forced into an economic u-turn

Question 13

1

Describe the cause of 1972 economic policy u-turn

Answer 13

• By Summer 1972, Heath had failed to secure trade union co-operation on wage restraint and anti-inflation measures

Question 14

3

Describe the policies of the 1972-73 economic u-turn

Answer 14

• 90 day freeze of pay and prices
• Creation of Prices Commission and Pay Board to control inflation (Counter-Inflation Act 1973)
• Government had introduced own statuory incomes policy -> complete abandonment of Selsdon Man

Question 15

4

Describe the floating of the pound in 1972

Answer 15

• Pound overvalued
• ‘temporary measure’
• Currency set by supply and demand rather than fixed rate
• Pound immediatley plunged in markets

Question 16

2

What were the unemployment in figures in early 1972 and 1973 respectively?

Answer 16

1m
500k

Question 17

3

Describe the causes of the 1973 Oil Price Crisis

Answer 17

• Yom Kippur War
• War prompted OPEC to declare oil emabrgo at nations percieved to be supporting Israel (inc UK and US)
• Oil exports suddenly stopped

OPEC - club of Arab oil nations

Question 18

5

Describe the effects of the 1973 Oil Price Crisis

Answer 18

• Price of oil increases to 4x usual levels (reached $12 by end of crisis)
• Severe shortages of fuel for industry and petrol for transport
• £1 fell to $1.50
• Imports became more expensive - huge deficits
• Inflation grew to 16% by 1974

Question 19

4

List industrial disputes when Heath came to office in 1970

Answer 19

• dockers strike
• large pay settlement for dustmen
• postal workers’ strike
• ‘go-slow’ by power workers which led to power cuts

Question 20

5

Describe the Industrial Relations Act 1971

Answer 20

• Very similiar to In Place of Strife - Labour still opposed bill in August 1971
• Had abolished National Board for Prices and Incomes in 1970
• Agreements between employers and workers were to be legally enforceable
• Closed shop was to be banned
• Industrial Court was set up to try cases

Question 21

4

Describe the failure of the Industrial Relations Act 1971

Answer 21

• Public standing of unions at highest level in 3 years at time of act passage
• TUC exploited legal loophole - if union refused to register they would remain beyond the reach of the new Industrial Court
• Immense political capital wasted
• Industrial Court had virtually no business as employers were fearful of consequences to labour relations

Question 22

2

Describe the Pentonvile Five 1972

Answer 22

• 5 shop stewards arrested in London Docks in 1972 after threatening to provoke paralysing strike
• Political deadlock led to release

Shop stewards - employees who were also union representatives

Question 23

3

Outline industrial relations in 1972

Answer 23

• Returned to policy of trying to manage wage demands through 1972 industry act
• 23m working days lost to strikes in 1972
• Highest since General Strike of 1926

Question 24

3

Describe the 1972 industry act

Answer 24

• Involved Government, TUC, CBI
• Would agree wages, prices, etc
• policy criticised by Powell and right-wing MPs

Question 25

# 5 Describe the causes of the 1972 miner's strike | first miner's strike

Answer 25

* National Coal Board had cut jobs from 700k (1957) to 300k (1972) * Miners wages were increasing much less than all other industrial workers * Moderate NUM President Joe Gormley under pressure from younger militants like Arthur Scargill of Yorkshire miners * Gormley secured a 14% miners wage increase in 1971 but then lodged for a bigger claim in 1972 * 8% pay offer in winter 1971-72 rejected ## Footnote NUM - National Union of Miners

Question 26

# 6 Describe the 1972 miner's strike

Answer 26

* Began in January 1972 * Considered miners 'could not possibly win' * ‘Flying pickets’ soon cut off the movement of coal to power stations * 1972 Battle of Saltley Gate * 1.2m workers laid off * Wilberforce committee set up to examine demands and came out in favour of miners

Question 27

# 2 Describe the Battle of Saltley Gate 1972

Answer 27

* Birmingham * Mass picketing blockaded distribution of tens of thousands of coke fuel

Question 28

# 3 Describe Heath's response to the 1972 miner's strike

Answer 28

* Declared State of Emergency * Rationed electricity * (Enforced 3 day week?)

Question 29

# 2 Describe the results of the 1972 Miners' Strike

Answer 29

* Settlement worth between 17-24% negotiated by NUM President Joe Gormley * Another u-turn for Heath's government

Question 30

# 4 Describe the causes of the 1973 Miners Strike | Second Miner's Strike

Answer 30

* Yom Kippur War -> high inflation and deficit rose from £1bn in 1973 to £3bn in 1974 * Coal became cheap energy source overnight due to spike in price of oil * November 1973, Pay Board offered the miners a 13% rise to counter rising dissatisfaction with the pay freeze * NUM even refused to ballot its members and rejected the offer and imposed an overtime ban

Question 31

# 3 Described Heath's response to the 1973 Miners' Strike

Answer 31

* Drafted in Whitelaw from NI Sec to Employment Sec - unable to break impasse * Three Day Week * Snap election

Question 32

# 2 Describe the 3 day week

Answer 32

* December 1973, imposed three day week for british industry * Despite predicitions, 1st quarter of 1974 saw manufacturing production at 95% of normal (blow to unions)

Question 33

# 2 Describe Heath's decision to call a snap election

Answer 33

* At 11th hour, TUC pledged that other unions would not exploit a prospective special settlement with miners -> Heath rebuffed offer * Heath called snap election in where Conservatives relished confrontation with unions

Question 34

# 4 Give a summary of declining industrial relations

Answer 34

* Became more militant * Use of more radical tactics like flying pickets * Informed by dissaproval of Conservative government * Reaction to long-term industrial change, particularly in coal industry

Question 35

# 2 Describe Heath's progressive Sex Discrimination policies

Answer 35

* Attachment of Earnings Act 1971 - husband liable for financial maintenance * Guardianship of Minors Act 1971 - women had joint responsibility with men over upbringing of children

Question 36

# 3 Describe Heath's social services policy

Answer 36

* Large increase in education budget (e.g. raised school leaving age to 16 in 1972, salvaged Open University) * Increases to health, agricultural, environmental budgets * Added to inflationary pressure before Yom-Kippur War

Question 37

# 4 Describe race relations under Heath

Answer 37

* Powellism became influential in 1970s * Intertwined with ascension to Common Market (freedom of movement) * **Immigration Act 1971** acted as successor to 1968 legislation * Race relations hampered with looming recession

Question 38

# 5 Describe the Immigration Act 1971

Answer 38

* passed in 1971, operative from 1973 * Unrestricted entry for those with patrial status * Elaborated on patriality, defining it as those who have lived in UK for at least 5 years * Entry for non-patrial citizens dependent on visa * Thus all non-patrial Commonwealth citizens who sought UK employment reduced to status of contract labourer ## Footnote patrial - British citizen (or substantial connections)

Question 39

# 6 Describe Heath's policy towards Ugandan Asians

Answer 39

* Triggered when Uganda's eccentric dictator Idi Amin in 1972 announced he had a dream which instructed him to give all Ugandan Asians 3 months to emigrate * Under 1968 quota, 3k were allowed to enter Britain in any one year * Government set up Ugandan resettlement board using military caps as holding centres * Linked with volunteer groups which helped find immigrants homes * 28.5k Ugandan Asians arrived * 30k new jobs created in Leicester -> became model-city for multi-ethnic integration

Question 40

# 6 Describe the situation in Northern Ireland in 1970

Answer 40

* Growing sectarian clashes between Catholics and Protestants * July 1970, army shot dead Catholic teenager during North Belfast riot * At first, Heath backed UUP leader Brian Faulkner, who led Belfast Govt * Operated under system of FPTP with political gerrymandering * Faulkner went along with night-time curfews and internment * 30k people and 4k shipyard workers marched in Belfast to demand internment in 1971

Question 41

# 5 Describe Home Secretary Maudling’s policies towards Northern Ireland

Answer 41

* Curb growing power of IRA * Night-time curfews introduced * August 1971, introduced internment without trial * 95% of those interned between 1971-1975 were Catholics * Jim McVeigh (IRA Commander) is quoted saying internment was ‘among the best recruiting tools the IRA ever had’

Question 42

# 4 Describe Bloody Sunday 1972

Answer 42

* 30th January 1972, Catholic Bogside area of Londonderry * Triggered by effective ban on civil rights march * Led to violent clashes with troops of Parachute Regiment * 13 catholics died

Question 43

# 4 Describe the effects of Bloody Sunday 1972

Answer 43

* British Embassy in Dublin was burned down * Support for the IRA grew as did funding from America * Grew from small force to mass organisation * 1972 marked bloodiest year for troubles (1382 explosions, 10k shootings, 480 deaths)

Question 44

# 6 Describe direct rule from Westminster

Answer 44

* March 1972 (6 weeks after Bloody Sunday), Heath suspended Stormont Government * Replaced by direct rule from Westminster with Whitelaw as NI Secretary * 200k Ulster Vanguard Movement members staged 2-day strike to protest abolition of Stormont * Situation continued to polarise with 'security forces' (British troops) detested by Catholics * IRA escalated campaign and carried out random civillian attakcs * Reinforced ungovernability in Ulster

Question 45

# 6 Describe the provisions of the Sunningdale Government

Answer 45

* December 1973, Whitelaw secretly negotiated power sharing agreement * Both nationalists and unionists guaranteed representation * catholics had role in govt for first time since 1920s! * New 78-member NI Assembly with system of PR * A Council of Ireland, with input from ROI executive, would have consultative role * British govt would retain control over law and order, finance

Question 46

# 5 Describe the opposition to the Sunningdale Agreement

Answer 46

* Basic social and economic problems of Catholic minority had not been addressed * Extremists on both sides denounced agreement * UVF and UDA opposed * UUP pulled out in Jan 1974 * Prospect of settlement undermined by second miners strike and Feb 1974 elec campaign on mainland Britain ## Footnote UVF - Ulster Volunteer Force UDA - Ulster Defence Association

Question 47

# 3 Describe the 1973 Northern Ireland Assembly elections

Answer 47

* Pro-agreement parties won clear majority (52 to 26) * UUP split into pro and anti white paper parties * Faulkner replaced as UUP leader by hardline anti-agreement Harry West

Question 48

# 4 Describe the 1974 general election in Northern Ireland

Answer 48

* UUUC (UUP, DUP, VUPP) formed electoral pact to field a single anti-Sunningdale candidate in each constituency * pro-Sunningdale supporters (Faulkner’s supporters, SDLP, Alliance, NI Lab party) fielded candidates against each other * **11/12 constituencies returned anti-Sunningdale candidates** * agreement dispute meant Con could not rely on UUP in hung parliament

Question 49

# 2 Describe reform of local government under Heath

Answer 49

* Local Government Act 1972 abolished historic counties like Rutland and imposed new boundaries like Cleveland * Housing minister Peter Walker refused partisan gerrymandering, as had been pleaded by CCO (Conservative Central Office)

Question 50

# 3 Describe Death and Scandals under Heath

Answer 50

* Death of Tory heavyweight Ian Macleod in 1970 proved devastating blow * Most senior figure, Home Sec Maulding, forced to resign in mid-1972 after his corrupt involvement with jailed architect, John Poulson * Enoch Powell became fierce critic of govt

Question 51

# 3 List heath's successes and failures | general summary card

Answer 51

Successes: * EEC entry * Raising school leaving age to 16 * Dealing with stagflation (Barber Boom) Failures: * Northern Ireland policies * Industrial relations * Nationalisations and backtracking on Selsdon Park * Economic failures (deficit, inflation, unemployment)

Question 52

# 5 Describe Labour in opposition (1970-74)

Answer 52

* Wilson seemed inert figure * Membership decline paved way for radical groups to influence local constituencies * 'Militant' - Trotskyite faction * Divide between left and right * 'Social Contract'

Question 53

# 4 Describe the **left** in Labour opposition (1970-74)

Answer 53

* Selsdon Man economic policy pushed party to left * Spurred by union leader such as Hugh Scanion, who was highly critical of 1964-70 * Further divide between uncompromising 'old left' (e.g. Benn) and 'soft left' (e.g. Foot) * Benn sought plan to nationalise 25 of top 100 companies (accepted by NEC by one-vote majority)

Question 54

# 2 Describe the **right** in Labour opposition (1970-74)

Answer 54

* Crossland attacked first Wilson adminsitration for failing to regenerate economy in *Socialism Now (1974)* * Jenkins and Williams isolated over defence, Europe and incomes policy

Question 55

# 4 Describe the 'social contract'

Answer 55

* Wilson negotiated it with Vic Feather, TUC General Secretary * Repeal of 1971 Industrial Relations Act, food subsidies, and a freeze on rent increases * In return, TUC members would cooperate with a programme of voluntary wage restraint * Would ensure Benn's plan to nationalise 25 major companies were not included in the manifesto

Question 56

# 3 Describe the February 1974 election campaign

Answer 56

* Conservative support stricken by militant unions and barren economy * Labour's 'Let us work together' manifesto contained just 10 pages * Denounced as half-baked by Crossland

Question 57

# 4 Describe the February 1974 election results

Answer 57

* Liberal increase in support to 19%, up 12 points * Liberals had won series of by-elections amid strikes * Led by Jeremy Thrope * Hung Parliament: Lab 301, Con 297

Question 58

# 2 Describe the February 1974 election aftermath

Answer 58

* Heath’s offer to extend coalition to Liberals failed * Wilson governed from minority govt

Question 59

What were diplock courts?

Answer 59

Non-jury courts to prevent intimidation by IRA

Question 60

# 3 Describe the 1973 border poll

Answer 60

- 99% support for remaining in U.K. - boycott by nationalists - yet 59% turnout demonstrated majority unionist support