Wilson's government 1964-70 Flashcards
The 1964 general election
Labour presented a more youthful image; they seemed more in tune with the young people and their idea of a progressive Britain.
Wilson tapped into the mood of the day by speaking of Britain’s need to respond to the white heat of the technological revolution.
Close result - not the recovery of Labour but falling support for the Conservatives.
Reason’s for Labour’s victory in 1964
Scandals tainting the conservative party.
The antiquated dated system which had produced Home as its leader.
Unemployment reached 800,000 in 1963, denting Macmillan’s claim that Britain had never had it so good.
Government’s failure to join the EEC
Wilson produced a more dynamic image than Home.
Tories were main target of satire.
Wilson’s skillful election campaign.
Labour’s difficulties in government
Britain was undergoing a major shift in its economic and social structure. Changing from an industrial economy to a post-industrial one.
This transition wasn’t smooth or consistent, and so caused considerable social disruption.
Britain failed to match foreign growth rates.
The national plan
The DEA, under George Brown, created this, a programme for modernisation, aimed at increasing industrial production and exports by encouraging co-operation between the government, employers and trade unions.
However, few of the expensive targets were met, and by 1967 it had been quietly abandoned.
But the electorate were sufficiently impressed by the government’s modernising approach, to give Labour a 110 majority in the 1966 election.
Tensions with the unions
Committed to the idea that inflation and Britain’s balance of payments deficit were the major threats to Britain’s economic progress, so wage and salary increases must be kept in check.
Wilson pressed forward with his ideas for cuts in government spending and a wage freeze.
A Prices and Incomes board was set up with the power to regulate pay settlements.
Frank Cousins resigned over this.
The gap between the government and unions became evident in a series of strikes over pay in 1966-67, the most disruptive being the seamen’s and dockers strike of 1966.
Devaluation
1967.
In 1967, Wilson approached the IMF for another loan, having borrowed £1 billion from them in 1964.
This was only a stop-gap.
Devaluation reduced the exchange rate of sterling from $2.80 to $2.40.
Wilson assured the people that this measure didn’t mean that the pound in their pocket meant any less.
By delaying the measure then dramatising it, Wilson had made devaluation appear as a major political and economic failure by the government.
Wilson remained convinced that Britain’s sluggish industrial performance was largely caused by poor industrial relations.
Labour and Europe 1967
Economic fears at home prompted Wilson to make Britain’s second application to join the EEC.
Fears that Britain would be left behind financially and economically if Britain joined.
De Gualle vetoed this application.
The annoyance of the other 5 members was evident.
Wilson suffered the same humiliation of Macmillan.
In place of strife
1969.
Wilson was determined to bring the unions into line.
This was a set of proposals aimed to preventing future strikes. The centre proposal was for the introduction of a series of legal restrictions on the right to strike.
Proposals also obliged employers to keep to agreements and to consult the unions when major decisions were being contemplated.
The unions weren’t impressed by this.
Created deep and immediate divisions within the Labour party.
Undermined the principles which the Labour party was supposed to stand- protection of the unions.
James Callaghan stressed the dangers to the party and government of alienating the trade unions, which provided the bulk of Labour’s funds.
Record of Wilson’s government
General feeling that his government hadn’t lived up to expectations.
Felt that the government had promised much but delivered little.
No substantial change.
Although certain sections of industry had been improved, it could not be said that the streamlining of British industry had been achieved.
Vietnam war
In 1963, in pursuing its containment policy, USA became involved in this war.
Although British forces took no part in this war, Britain did give its diplomatic support to the USA.
This was further evidence of Britain’s subservience to the USA in foreign affairs.
End of Britain’s ‘east of Suez’ role 1967-71
In 1967, Denis Healey announced plans for the withdrawal of British troops from their bases in Borneo, Malaysia, Singapore and the Persian gulf.
This was because of:
Cost of maintaining expensive bases
Suez crisis had undermined Britain’s confidence
Decolonisation made it logical for Britain to withdraw for it’s military bases.
Since Britain was still committed to the development of its nuclear weapons, it could still claim to be a world power, despite these cut backs.
1970 general election
Wilson’s undistinguished economic policies and his apparent failure to control the unions had lost his government significant support.
Powell’s rivers of blood speech (and his stand on immigration) had lost the Tories 2.5 million votes.
R.W Jonson (a Psephologist, an expert in voting patterns) claimed that Powell won the 1970 election of the conservatives.
