Wilson and the Labour Governments Flashcards
1964 general election results
Labour 317 seats
Conservative 304 seats
Other 9 seats
Majority of 4
1966 election results
Labour 363 seats, 47.9% votes
Conservative 253 seats, 51.9% votes
Other 14 seats, 10.2% votes
Majority of 96
Wilson’s ideology
Supported Britains nuclear deterrent
Attempted to reform trade unions
Initially appeared on the left of the party - had been a bevanite.
Tended to be centrist as PM
Wanted to transform Britain into a modern, dynamic country.
Wilson’s character
Seen as classless, a modern image far removed from the old Etonian style of the previous conservative PMs.
Publicly a relaxed and skilful performer.
Privately insecure and anxious about his leadership.
Conscious of playing his ministers off against each other to preserve his leadership.
Became known as a slippery character.
How did Wilson appeal to both the left and right of the Labour Party?
Left
Originally a bevanite, launched a leadership bid against Gaitskell in 1961.
Right
Served in Gaitskells shadow cabinet, in favour of the nuclear deterrent, attempted to reform trade unions in 1961.
Economic situation in 1964
Britain was lagging behind other countries like West Germany and Japan.
Stuck in a cycle of ‘stop-go’
Inherited a deficit of about £800 million
HOWEVER Inflation was low, unemployment low
What two main economic policies were labour faced with?
Deflation - support the value of the pound and prevent inflation - remain in the ‘stop-go’ cycle.
Devaluation - Make Britains exports cheaper and imports more expensive, in turn help the balance of payments - This would highlight Britains economic weakness, hurt the labour party’s reputation.
What did Wilson actually do to attempt to help the economic problems?
Set up the Department of Economic Affairs (DEA).
The DEA, led by George Brown, set growth targets and created economic planning councils with an aim to secure the restraint needed to prevent inflation rising.
In this way the stop-go cycle could be avoided.
Outcome of the DEA
The DEA and the treasury were virtually in competition. The treasury felt undermined by the DEA. George Brown was impulsive and inconsistent .
The DEA was abandoned in 19767.
The prices and incomes policy
Implemented by a Prices and Incomes Boards.
Government intervention to set limits on prices and call for wage restraint in negotiations between unions and employers.
Another sterling crisis in 1966 led to a strike by the National Union of Seamen - Wilson defeated the strike with a critical attitude, in the aftermath Frank Cousins resigned from the cabinet over the incomes policy.
Labours inevitable economic measures
Decided devaluation could not be avoided, the pound dropped by 14% to 2.4 USD.
Labour made defence cuts and restricted hire purchases and introduced higher interest rates.
Similar polices to the ‘stop-go’ methods of the previous Tory’s.
Jenkins economic recovery
After labours EEC application was rejected,
From 1967, chancellor Roy Jenkins introduced deflationary policies.
He raised taxes and tightened up on government spending, placing the balance of payments as top priority.
These made the gov. unpopular, but by 1969 there was a balance of payments surplus.
Favourable trade union relations at the start of labours term
Full employment and working alongside the trade unions was seen as essential.
In the early 1960s nearly 60% of people had a favourable view of the trade unions
In 1964, Wilson made Frank Cousins minister of technology.
Breaking down of trade union relations
In 1966 and 67, strikes caused major economic problems.
‘Wildcat strikes’ showed a lack of control by union bosses
Frank cousins resigned from the cabinet.
What did ‘In Place of Strife’ propose?
- A 28 day ‘cooling off’ period before a strike went ahead
- the gov. could impose a settlement when unions were in dispute with each other
- strike ballots could be imposed
- an industrial relations court could prosecute those who broke the rules.
