Wilson’s Leadership (1964-70) Flashcards
(51 cards)
Why did Wilson not want to choose devaluation in 1964?
• Would anger the US as it would threaten a run on the $, as investors would assume that if Britain devalued then so would the US
• Seen as the “easy way out”
• Led to the failure of Labour governments in 1931 and 1949
When was The National Plan set up?
September 1965
What were the Features of the National Plan?
• NBPI set up which made sure that wage increases were proportional to production increases
• Investments into modernising British industries by creating a programme of regional development and better training for workers
What were the aims of the National Plan?
• 3.8% economic growth in 6 years
• 5.25% increase in exports each year
What department was set up to control the the national plan?
The Department of Economic Affairs (DEA)
What were some of the failures of the National Plan?
• The Treasury refused to work with the DEA
• NBPI had limited power to enforce decisions so often relied on the co-operation of the trade unions (however they disagreed with wage restraints so they often found it hard to work with each other)
What were some of the successes of the National Plan?
Callaghans deflationary measures reduced the BOP defecit and prevented a run on the £
Secured them a victory in the 1966 election
What was labours slogan during this time?
“You know Labour government works”
When was the sea men strike and how did it effect the British economy?
May 1966
Sea men demanded pay increases
Damaged British exports abd threatened a run on the £
How much did unemployment increase from 1964 to 1967?
1.7 million to 2.5 million
How much did Roy Jenkins increase taxation by?
£923 million
How did Roy Jenkins decrease military spending?
Removed troops stationed east of the Suez Canal in 1971
Who replaced Callaghan as chancellor of the exchequer in 1967?
Roy Jenkins
What were some of Jenkins deflationary measures?
Deferred previous labour policies
- Raising school leaving age from 15->16 deferred
- Prescription charges reintroduced after being abolished in 1964
Were Jenkin‘s measures successful?
Yes
- £1.1 billion BOP surplus by 1969
- sterling value rose
- interest rates reduced
How was devaluation successful?
Increased exports as goods were now cheaper, higher demand from foreign traders
Economy stabilised and inflation was more controlled
Were Labour economically successful?
Only held short term impact
- focus on BOP and value of the £, but failed to address underlining issues in the British economy
- unemployment higher in 1970 than it was in 1964
How did the Labour government improve low income manufacturing areas?
- Built motorways in the north of England
- Encouraged development of manufacturing sites in Tyneside, South Wales and Merseyside
How many illegal abortions took place in the 1950s, and which act did this encourage the passing of?
100,000
Encouraged the passing of the abortion act in 1967
What did the family planning act do and when was it passed?
1967
Allowed unmarried women to use contraceptives, making contraceptives available to all
When was the equal pay act passed?
1970
What did the criminal justice bill of 1967 do?
- Ended birching (physical discipline) of young offenders
- Introduced suspended sentences and extended early parole (in hopes to reduce growing prison population)
When was the death penalty suspended and then finally abolished?
Suspended for 5 years in 1965 and then abolished in 1969
What did the sexual offences bill of 1967 do? Why was this significant?
Legalised homosexuality
Argued that vassal would not have betrayed Britain if Russia didn’t black mail him for his sexual desires
