economy-wilsons premiership

industrial relations

• wilson had negotioated social contract with trade union congress

• allowed wilson to end state of emergency and 3-day week because of agree,ent with national union for miners

social contract (1973)

• involved voluntaary pay restraint by the trade unions and in return goverment would repeal Heaths 1971 industrial act and pay board

• by 1975:social contract was limiting wage demands and ,more formal pay restraint policy introduced

• TUC accepted maximum pay rise of £6 maximum per week

chancellor

Denis Healey issued 2 budgets aimed to deal with economic crisis

balance of pay deficit

£3 billion

economic reforms

• Healeys first budget saw increases in pension benefits and food and housing to help poorest groups: financed by higher taxes and cuts in defence budgets

• 1975:rises in taxes and public spending cut

• 1976:nationalised shipbuilding and british aerospace

national enterprise board (1975)

• under Tony Benn to administer govermnents share holding in private companies

• invested heavily in British Leyland

• invested into failing businesses

inflation

1974:16%

1975:24%

1976:16.5%

european referendum (1975)

• voter support for staying in EEC much stronger for economic support

• castle and foote: against bad for workers

• Ben,powell and paisley:against- Britian would lose independance

EEC votes

17 million voted yes and 8 million voted no: 1/3 didnt vote