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British History > Topic 3: Labour (1974-79) > Flashcards

Topic 3: Labour (1974-79) Flashcards

1
Q

4

Describe the October 1974 election

A
  • Lab won 319 seats
  • Majority of 3
  • Lab pledged vote on EEC membership - Wlliams claimed she would leave party if Britain voted to leave EEC
  • Liberal vote damaged by IRA Guildford Pub bombings as they were less tough on terrorism
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2
Q

8 - don’t need to know all!

Describe Wilson’s cabinet in 1974

A
  • CX - Healey
  • FO - Callaghan
  • HS - Jenkins
  • Env - Crossland
  • Trade/industry - Benn
  • Employment - Foot
  • Record 2 women in cabinet (Williams and Castle)
  • Balanced hard and soft left
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3
Q

3

Describe the Poulson Affair (in relation to labour)

A
  • Had hit tories with Maulding resigning
  • Two Lab figures, Cunningham and T Dan Smith sent to prison on corruption charges
  • Wilson responded by setting up Royal Commission on standards of conduct in govt
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4
Q

4

Describe the emergency decisions made by Wilson in March 1974

A
  • Opted for minority govt rather than Liberal support
  • Repealed Industrial Relations Act
  • Abolished Pay Board
  • Intended to display frendly sentiment to unions
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5
Q

4

Describe the Northern Ireland Constitutional Convention

A
  • Rees (NI Sec) allowed Sunningdale agreement to collapse in May 1974
  • Set up consultative Constitutional Convention elected via STV
  • direct executive/legislative powers to be eased once tensions decreased
  • Failed in May 1976
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6
Q

3

Describe Northern Ireland under Wilson (1974-76)

A
  • Sunningdale and Constitutional Convention fail
  • Jenkins introduced the Prevention of Terrorism Act 1974 following IRA Birmingham Pub bombings
  • Rees (NI Sec, 74-76) ended internment in December 1975
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7
Q

5

Describe the 1975 EEC referendum

A
  • Wilson agreed to ref to placate hard left, esp Benn
  • Cabinet permitted free vote: yes (Castle, Benn, Powell), no (Williams, Jenkins, Thatcher)
  • Those who supported ‘no’ split between two camps of impact of british workers (e.g. Castle) and issues of sovereignty (e.g. Benn, Powell)
  • Wilson posed as moderate who believed on balance UK should remain in EEC
  • 67% no - decisive victory for Wilson who could end principle cabinet debate
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8
Q

5

Describe the May and July 1974 budgets

A
  • Aftermath of 1973 Oil Price Crisis
  • Keynesian feel
  • Tax increases countered by higher pensions and food subsidies
  • No serious cuts in public services and stability in balance of payments
  • However inflation remained at 20% and manufacturing production stagnated
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9
Q

3

Describe the repeal of the Industrial Relations Act

A
  • Agreed in ‘social contract’
  • Alliance with Employment Sec Foot helped restore govt-major union relations
  • Coal strike ended by buying off miners
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10
Q

4

Describe the impact of repealing the industrial relations act

A
  • industrial earnings went up by 15% in 1973, 19% in 1974 and 23% in 1975
  • Number of days lost to strikes dropped
  • By the end of 1974, inflation was at 28% and the Unions demands were out of control (some even demanding 94% increases)
  • rendered ‘social contract’ worthless
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11
Q

4

Describe Jack Jones’ voluntary wage restraint policy proposal

TGWU General Secretary

A
  • Suggested flat rate rise of £6 a week for everyone (v socialist policy)
  • TUC accepted this as policy in June 1975
  • showed clear awareness from unions that excessive wages were crippling economy through inflation and unemployment
  • enacted and brought inflation down by 1976
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12
Q

3

Describe the economic situation by the end of 1974

A
  • Rising food prices under CAP and oil prices
  • Inflation rate at 28%
  • Public spending cuts needed to meet 5-7% inflation target by 1977
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13
Q

6

Describe Wilson/Healey’s attempts to curb inflation (1975-76)

A
  • Department of the Environment, under Crossland, imposed spending controls on local authorities
  • April 1975 budget reduced money supply by
    • raising taxes to over £1bn a year
    • imposing a 3% maximum for wage increase
  • Inflation and strikes fell steadily in 1975 and 1976
  • Massive price and income policy u-turn
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14
Q

2

Describe the resignation of Wilson 1976

A
  • Resigned unexpectedly due to mental and physical exhaustion
  • Callaghan had broad appeal and convincingly defeated Foot on leadership ballot
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15
Q

4

Describe Northern Ireland under Callaghan (1976-79)

A
  • Rees succeeded by Roy Mason
  • Focussed on trying to get direct rule to work
  • Gave greater responsibility to RUC
  • Used SAS for counter-insurgency operations against IRA
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16
Q

4

Describe Callaghan’s cabinet

A
  • Little overall change
  • Political rival Castle ejected from Cabinet
  • Crossland became FS - died in 1977 and suceeded by youthful David Owens
  • Partnership with Foot (DPM) kept left in line

DPM = Deputy PM

17
Q

1

Describe Calaghan’s ideology

A

Did not display socialist dogma → 1976 Party Conf stated: ‘You cannot now, if you ever could, spend your way out of recession’

18
Q

3

Describe the political impact of the 1976 economic crisis

A
  • Labour lost series of by-elections
  • Lost parliamentary majority
  • Led to Lib-Lab pact
19
Q

4

Describe the Lib-Lab Pact 1977-78

A
  • 1976, David Steel had replaced Jeremy Thorpe as leader
  • Liberals did not want to fight GE on back on Thorpe Affair
  • Agreed to prop up govt and avoid vote of no-confidence
  • Callaghan also relied on Scottish/Welsh nationalist parties who supported govt plans for devolution
20
Q

7

Describe devolution under Callaghan

A
  • Refs took place in March 1979
  • Welsh devolution ref - 80% ‘no’ vote
  • Scottish devolution ref
    • 52% ‘yes’ vote
    • ruled invalid as 40% of the electorate had not voted yes under terms of Scotland Act
    • SNP withdrew support
  • Triggered no-confidence vote
21
Q

4

Describe the 1979 vote of no-confidence

A
  • Brought by SNP
  • Govt defeated 311 to 310
  • Alfred Broughton (Lab MP) mortally ill in hospital and thus unable to vote
  • Vote marked ‘last rites’ of Old Lab
22
Q

3

Describe the 1978 election that never was

A
  • Elec had been expected in 1978
  • Gallup poll found Healey’s 1978 budget was regarded as ‘fair’ by 68%
  • Callaghan had not employed govt prerogative - instead elec would take place at worst possible time
23
Q

2

Describe the economy by 1976

A
  • Signs of recovery but economy had shifted to overall lower level
  • From 1960-73, economic growth had averaged 3% a year; from 1974-79, growth averaged 1.5% a year
24
Q

5 - don’t need to know all!

Describe the 1976 Sterling Crisis

A
  • By autumn 1976, economy had deteriorated
  • Sterling down to $1.57
  • Balance of payments deficit close to £1bn
  • 1.25m unemloyed
  • Annual inflation at 16.5%
25
Q

3

Describe Healey’s response to the 1976 Sterling Crisis

A
  • Sought £4bn standby loan from IMF
  • Conditional spending cuts of £2bn - caused frictions within Labour party
  • Accidentally embraced monetarism
26
Q

6

Describe the effects of the 1976 IMF Crisis

A
  • By April 1976, Healey had cut spending
  • IMF Crisis meant he would be forced to introduce a further round of cuts in Dec 1976
  • Surplus in balance of payments by 1977
  • Major fall in expenditure on housing/edu by 1979
  • IMF Crisis plummeted Lab to lowest standing since post-devaluation period 1968-69
  • Labour lost several by-elections (notably Ashfield - a mining constituency safe seat) → only saved by Lib-Lab pact
27
Q

3

Describe North Sea Oil

A
  • 1974: UK imported over 100m tns of oil and exported less than 1m
  • North Sea Oil deposits came on stream
  • 1980: imports and exports were balanced
28
Q

4

Describe industrial relations policy under Callaghan

A
  • Foot worked to produce passed legislation to give unions powers over closed shops
  • N of days lost to strikes inc in 1977
  • Incomes policy of 3% had been success
  • 1978, Callaghan limited wage settlements to 5%
29
Q

4

Describe the reaction to Callaghan’s income policy

A
  • 1978, Callaghan limited wage settlements to 5%
  • Totally opposed by Moss Evans, new leader of TGWU
  • Thrown of of TUC annual conference
  • Govt remained firm
30
Q

1

Describe the cause of the Winter of Discontent 1978-79

A

Unofficial strike by Ford motor workers settled with 17% pay increase, well above 5% govt limit - set precedent for private sector and eroded govt plans to tame inflation

31
Q

4

Describe the Winter of Discontent 1978-79

A
  • Gravediggers in Liverpool, dustmen piled rubbish in street
  • 29.5m working days lost to strike
  • Gallup poll in Jan 1979 found 84% people felt unions held too much power
  • The Sun: ‘Crisis? What Crisis?’
32
Q

2

List the major social legislation passed under Wilson and Callaghan

A
  • Wilson - 1975 Sex Discrimination Act
  • Callaghan - 1976 Race Relations Act
33
Q

Describe the prevention of terrorism Act 1974

A

Temporary measures to conduct checks on people crossing Irish Border

34
Q

2

Describe economic positives under Callaghan

A
  • 1977 budget surplus used to buy up dividends in North Sea Oil
  • IMF loan not fully utilised - not needed due to Callgahan’s economic steadiness
35
Q

3

Describe the 1973 Northern Ireland Boorder Poll

A
  • 99% in favour of NI remaining constituent part of UK
  • Turnout of 59%
  • Nationalist boycott
36
Q

4

List the reasons for the problems in NI in the 1970s

A
  • Counter-insurgency policy (internment, prevention of terrorism act 1974, Callaghan - SAS)
  • Hardline unionist attitudes
  • Nationalists (e.g. border poll, paramilitary)
  • Economic/political mainland issues detracted attention

British History (36 decks)

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