CHAPTER 5 - Wilson + Labour Governments

What years was Harold Wilson PM?

1964-1970 AND 1974-1976

How did Harold Wilson become PM in 1964?

Public image of ordinary, grammar school educated man, singificant due to age of deference + questioning of the establishment. Made party seem ‘in touch’ w/ new social + societal norms (antithesis of Douglas Home)

What was the ‘White Heat’ speech?

A speech by Wilson in 1963, emphasizing the need for technological advancement and modernization in Britain to achieve economic growth and social progress. (‘Scientific Revolution’ party plan)

Why was Wilsons ‘White Heat’ speech effective?

Resonated with the public's desire for change and innovation, highlighting the importance of science and technology in improving living standards and revitalizing the economy. (Britain needs to ‘catch up’ w/ technological advancements.)

Labour majority in 1964 and 1966 elections? (+WHY DID IT CHANGE?)

1964: 4

1966: 98

Wilson = relaxed + telegenic in media on TVs (more likeable) juxtaposing Edward Heath (new Con. party leader) who was awkward + dull.

Who was Edward Heath?

PM from 1970-1970, also had an image to public as ordinary, grammar school man. (Con. Party wanted to seem ‘not out of touch’ again.)

What were the different interpretations of Wilson?

1. Left Winger

2. Moderate/Centrist

3. Opportunist

4. Moderniser

Why was Wilson seen as a Left Winger?

Was ‘Bevanite’, 1950s resigned from Attlee gov, over prescription charges (loyal ally) + 1961 challenged Gaitskell’s leadership.

Why was Wilson seen as Moderate/Centrist?

Served in Gaitskell’s shadow cabinet, supported nuclear deterrent and attempted to reform traude unions (saw them as exceeding their power).

Why was Wilson seen as an Opportunist?

Critics argued he shifted policies for political gain, often changing positions to align with public opinion. (Did what he had to to gain popularity with public + power.)

Why was Wilson seen as a Moderniser?

[From both his actions + image.]

ACTIONS:

• Emphaasised scientific + technological revolutions

IMAGE:

• Projected ‘classless’ image (different from Etonian style of Eden, Mac. and Home)

• First PM from state school

• Spoke w/ a Yorkshire accent

• Skilled performer on TV

What was the ‘Kitchen Cabinet’? (WHO did it contain?)

Contained team of trusted advisors being: Few trusted MPS + economic advisors.

Most important of this cabinet:

• MARCIA WILLIAMS - Wilson’s ‘personal + political’ secretary.

Why was there a ‘Kitchen Cabinet’?

Wilson = insecure + anxious (paranoid) leader, his Cabinet contained several experienced + popular figures who could be rivals and take his place (E.G James Callaghan)

What happened as a result of the ‘Kitchen Cabinet’?

Wilson relied on his most trusted advisors who weren’t cabinet members or civil servants.

Due to this, many argue that the Kitchen Cabinet REINFORCED Wilson’s suspicions of his rivals + prevented ministers from having access to him.

Why were there issues with Wilson’s committment to technological change? (+ 2 Individual Examples)

Despite Wilson’s committment, his government’s expertise was LIMITED. (Not everyone in it was committed or experienced…)

• ROY JENKINS = Aviation (aircraft) Minister, yet admitted that as a non-scientist he struggled to understand his work.

• FRANK COUSINS = Technology Minister, former T.U leader who had little intrest in technology! (a role which was meant to be the SPEARHEAD of revelution!)

Why did the Wilson Government economically struggling to commit to technological change?

Research + development = VERY expensive.

TO AN EXTENT Britain could afford it, E.G with the supersonic plane Concorde.

HOWEVER, Britain unable to compete with USA in technological progress and economic might.

WHY did the Wilson Government face struggles ?

Not only due to poor choices of appointment, but ABOVE ALL due the INHERITED economic problems from the previous decade (under conservative rule).

How was British economy seen in 1964? (In comparison to others)

1964 widely accepted British economy was lagging behind its’ competitors, especially USA, Japan, West Germany.

How much was the Government deficit Labour inherited?

£800 Million (ts pmo me off..) —→ became a main priority Wilson needed to tackle.

What exacerbated Labour’s economic issues?

1963 application to EEC vetoed by De Gaulle, denied benefits of economic aid (e.g w/ free trade)

What ‘traditional’ method did Labour use to fix the economy at first?

With continued usage of ‘stop-go’ cycle there was a lack of long-term economic planning. (Britain stuck w/ bursts of prosperity leading to inflation.)

What did ‘stop-go’ policies lead to?

Balance of payments crises + periods of HIGH inflation; Britains’ spending on imports EXCEEDING revenue from exports.

Pros and Cons of deflanatory policies?

PROS:

• Would control inflation + PREVENT devaluation

CONS:

• No different from old ‘‘stop-go’ policies

• Labour would also be unable to deliver its’ promises to spend more welfare on tech.

What is ‘devaluation’?

Lowering of a currency in comparison to others in a fixed exchange system.

Pros and Cons of Devaluation of GBP?

PROS:

• Would make exports cheaper (→ people more tempted to buy from Britain, fuelling economy)

• More competitive by making imports more expensive (→protecting British business, encouraging people to buy British).

CONS:

• Political humiliation, would emphasise Britain’s economic weakness (‘acceptance’ it doesn’t compare to US…)

• Wilson ALSO feared Labour being seen as the ‘devaluation party’ as it was previously done by Attlee in 1949.

What was Wilson’s ‘Long-term economic planning’ department?

(instead of devaluation or stop go) Wilsom set up Department of Economic Affairs (DEA).

What was the DEA?

Department of Economic Affairs, led by George Brown in attempt to break out of stop-go cycle.

DEA set growth targets and created ‘economic planning councils’.

How did Wilson try to curb inflation?

• DEA

• Tried to establish voluntary agreements about wages and prices with union leaders. industialists and civil servants.

What was the Treasury’s reaction to the DEA?

Treasury (orthadox economists) resented DEA attempting to control economic policy.

Chancellor of Exchequer (James Callaghan) unhappy about Brown’s influence in this area (economic policy).

Why did the DEA fail (from political reasons)?

Wilson trying to keep key personalities happy rather than picking who’s best for the job. Brown = impulsive + inconsistent, but also popular in party and experienced (Wilson knew he had to give him a key role.)

Why did the DEA fail (from personal reasons)?

Others claimed civil servants were undermining Brown, tapping into his phone + refusing to pass over papers.

What happened in 1966 and 1967 to Brown + DEA?

1966: Brown moved to the Foreign Office

1967: DEA abandoned by Wilson

What are price and income policies?

Government intervention to set limits on price rises and wage restraint in negotiations w/ unions and employers. (AIMS TO TACKLE INFLATION).

What was established to oversee the price and income policies? + CONSEQUENCES

Prices and Incomes Board established.

Consequences occured:

• Calls for wage restraint led to tensions between Labour + Unions (relationship began to break down).

• 1966: Frank Cousins (Union leader) resigns from the cabinet.

Criticism of Wilson from the Left of party, who saw him as too hostile to the unions + strike action.

What events affected British economy in 1967?

• 1967: Oil supplies were affected by the outbreak of war in Middle East (Israel v Arab neighbours).

• Aug. 1967: Major dock strike affected exports, leading to balance of payments crisis (created NEED for devaluation.)

What happened when the government devaluated the pound? (+what else did they introduce?)

DEVALUATION:

• Due to devaluation of the pound, it dropped by 14% against the US dollar, ending up at the rate of £1 to 2.40 dollars.

DEFLATIONARY POLICIES:

• Policies such as hire purchase restrictions + higher interest rates.

What did the Devaluation Crisis of 1967 do to Labour’s credibility?

Labour had tried to avoid devaluation + deflationary policies, but their introduction damaged the party’s credibility.

How else was the situation of the Devaluation Crisis worsened?

Worsened few weeks later when Britain’s 2nd application to EEC was rejected.

What economic improvement occured in 1969? + By who and how?

New Chancellor of Exchequer Roy Jenkins achieved a balance of payments surplus in 1969 via deflationary policies (e.g raising taxes + cutting spending).

HOWEVER, inflation in 1969-70 was 12%.

How were trade unions viewed by post-war consensus + public?

CONSENSUS:

• always included a commitment to full employment (NOT everyone employed, unemployed being as low as possible…)

PUBLIC:

• Early 1960s showed ~60% of public viewed unions positively.

What did Wilson do to gain support from Unions? (+ for WHAT?)

Wilson needed support + co-operation w/ his prices and income policies,

SO he appointed Frank Cousins (T.U leader) as Minister of Technology.

What were ‘Wildcat’ strikes?

Unofficial (primarily local) strikes with no permission from national union leaders (AKA ‘the top’).

When did Wildcat strikes occur and by who?

1966-67, carried out out seamen and dockers.

What did Wildcat strikes suggest and cause?

Suggested that traditional union bosses were losing their influence over members (to an extent losing their grip + power).

Caused economic problems for the government (showing + contributing to Wilson’s economic issues).

What did Wilson have to do about the Wildcat strikes + his views on the Unions?

Despite STILL believing in strong T.U’s + having socialist principles,

Needed to use the law to ‘clamp down’ on thees unofficial strikes to help the economy; unions needed to be under SOME control.

What DID Wilson do about the Wildcat strikes (+with who)?

Whilst both Wilson + his employment minister Barbara Castle were in favour of T.Us, necessary to clamp down on them for economy.

Jan 1969 - Castle published her plans in doc. ‘In place of Strife’.

Aim of ‘In place of Strife' + what was it?

Strife = conflict; the aim was to keep unions strong but at the same time protect the economy.

White paper (AKA a document written by the gov. that sets out a possible policy direction but doesn’t make any commitment to it).

What did Castle say about ‘In place of strife?’

Castle knew it’d be controversial, said it’d be ‘political suicide’.

What parts of ‘In place of strife’ did the Unions object? (List 4 + explain why.)

• Proposal of a 28 day ‘cooling-off’ period before a strike went ahead

Unions saw this as giving too much power back to employers since they’d have 4 weeks to negotiate.

• Proposal that strike ballots could be introduced (so members will have to vote about going on strike).

• Gov. would impose a settlement when 2 T.U’s were in dispute with each other (AKA DEMARCATION DISPUTES)

Castle suggested that in cases of no obvious solution between 2 T.U’s, gov. would step in. Unions saw this as their power being taken away.

• Creation of an industrial relations court to prosecute anyone who broke the rules.

Who supported ‘In place of strife’?

• Supported by much of the public

• senior Labour MPs, E.G Roy Jenkins

Who opposed ‘In place of strife’? + key individuals

• Union leaders , E.G Jack Jones, the General Secretary of the TGWU (Transport and General Workers Union) (Jones = very powerful + leading figure in opposition).

• ~50 Labour MPs, including James Callaghan (Home Sec.)

Why didn’t ‘In place of strife’ become law?

NEVER became law, as after months of wrangling, Wilson + Castle forced to back down.

Too much opposition to go through with it, so 1969 TUC negotiated a face saving compromise, VERY humiliating climb down by gov.

Significance of ‘In place of Strife’ never becoming law?

• Economic issues caused by ‘wildcat’ strikes never solved.

• Relationship between Labour + Unions causing issues for Wilson.

How did Wilson emerge as leader?

After deaths of Bevan + Gaitskell, Wilson emerged as a ‘centrist’ leader, uniting left + right (especially w/ his focus on technology).

Why was Labour divided under Wilson?

Due to personal rivalries, causing difficulties.

What are 3 reasons Wilson afraid of a leadership challenge from Brown?

• Brown never recovered from losing leadership election to Wilson

• Brown never recovered from being passed for Home Secretary in 1964 (DEA instead, Home Sec. = Callaghan)

• Alleged Wilson kept a record of embarrassing incidents involving Brown (as Brown had a rep. as a heavy drinker).

What are 3 reasons Wilson afraid of a leadership challenge from Jenkins?

• Jenkins previously a Gaitskellite (created distrust)

• Wilson didn’t really support Jenkins liberal reforms as Home Sec. (didn’t fully oppose them, but not fully supportive.)

• Wilson feared Jenkins push for devaluation after strikes of 1966 was actually a plot to undermine the PM. (paranoid!)

Why were there tensions between Callaghan and Jenkins? (+what did they show about Wilson?)

(Wilson feared them working together, highlighting his paranoia).

CALLAGHAN:

• Anti-EEC

• Conservative on social policy

• Reluctant to devalue

• Opposed union reform

JENKINS:

OPPOSITE line all these issues.

Who criticised Wilson?

Wilson’s main rivals in Cabinet were from the Right, but he was also criticised by the Left for not pursuing sufficiently socialist policies (left felt ‘betrayed’ as Wilson = originally Bevanite).

Effects of Wilson’s increasing obsessions with plots + divisions?

CAN be argued they were party responsible for some of his governments, economic issues.

Would the governments economic issues been solved easier if he was more focused on them + less on party unity and fear of his position being threatened?

Why was it more likely a divide between the left + right of the Labour party would re-emerge?

• Though Wilson had no obvious challenge, those more left-wing in unions, local government and young people were frustrated with his government.

When was Northern Ireland established + why?

1922 Northern Ireland created after the Irish War of independence (1919-1921).

History between Britain + Ireland?

England wanted to increase its’ power over Ireland. Initially had issues over power, territory + control, but issue of religion (after 1534 AKA Henry VIII’s split from Catholic Church).

Ireland = Catholic

Britain = Protestant

Religious differences between Britain + Ireland?

Ireland = Catholic

Britain = Protestant

Britain wanted to make Ireland more ‘English’ with making them:

• Protestant

• Employ English legal systems

• Speak English rather than traditional Gaelic

How was Ireland divided after the War of Independence?

War of Independence = 1919-21.

6 counties in North remained in England as Northern Ireland, but rest of the country = Irish Free State (independent from UK)

What were the reactions to the partition of Ireland?

Those who fought for Independence disagreed amongst themselves on partition, leading to civil war.

What is a Unionist?

An Irish person/politician who believes in being part of the UK.

What is a Loyalist?

A more radical unionist, often prepared to use violence.

What is a ‘Nationalist’?

An Irish person/politician who resists the control of the UK (wants a united Ireland).

What is a ‘Republican’?

A more radical Nationalist, often prepared to use violence.

What is the ‘Ulster’?

A term often used for Northern Ireland.

How was Northern Ireland during the Wilson years?

Majority of Northern Ireland = Protestant

Northern Irish Parliament = dominated by Protestant unionists (so was business + industry).

What were attitudes to Catholics in Northern Ireland during the Wilson years?

Catholics discriminated against, happened in housing, employment + drawing of electoral boundaries for council elections (to prevent Catholics being elected).

What is the RUC, its’ attitudes to Catholics + evidence?

• RUC = Northern Irish police force

• Biased against Catholics

• Battle of Bogside (footage emerged of the RUC beating nationalist Catholic protesters).

What do Catholics do in Northern Ireland to challenge discrimination (peacefully)? + When?

1964 - Catholic activists set up the civil rights movement.

What did some Loyalists fear about the Republican IRA? +what occurred as a result?

IRA = Irish Republican Army

Fought for independence in 1919-21 war, fear they’d do it again w/ violence.

As a result, loyalists began setting up their own paramilitary groups to counter Republicans (preemptive strategy)

What is a paramilitary group?

An unofficial non-state military army (yet organised + looks like one).

Who were the ‘Apprentice Boys’?

Loyalist group that annually marches in Derry to commemorate the closing of gates to Derry to Catholic forces (1688).

What was the Battle of Bogside? + When was it?

1969 - Nationalists attacked group of Apprentice Boys holding their annual march in Derry, leading to 2 days of rioting which the RUC was unable to control.

Why was the RUC condemned by Catholics in their handling of the riots in Bogside?

RUC condemned by Catholics when footage emerged of the police beating nationalist Catholic protesters.

What happened to the riots in Northern Ireland?

They spread. Stormont government offered concessions on housing + electoral boundaries →sparking conflict from Loyalists.

How were the riots in Northern Ireland resolved? + consequences?

AUG 1969 - Wilson government sent in British troops in attempt to keep peace (forced to since Northern Ireland is part of the UK).

Seemed like the only thing Wilson could do, but angered nationalists fighting against British control (a VERY controversial decision by Wilson).

Why was the post-war consensus breaking down after 1970?

Support for it breaking down because:

• Economy problems were not solved

• Trade unions = uncooperative (forcing even the Labour party to try reform industrial relations)

• Social problems + poverty not ended

Even conservatives under Heath doubted key elements of it, e.g questioned if the state should take a great role in ensuring employment + planning the economy.

Why did Labour lose 1970 election?

Came as a surprise to some as economy was stable + Wilson was more popular than conservative Heath.

But although Heath appeared dull, he had an image of COMPETENCE.

(Wilson in contrast had seen real + perceived failures).

When did Enoch Powell make a speech + what was it called?

1968 - Enoch Powell’s famous ‘Rivers of Blood’ speech which warned further against immigration.

Significance of Powell’s ‘Rivers of blood’ speech?

Though Heath sacked Powell, this speech may have turned the Conservatives over to immigration issues.

Why did the Conservatives win the 1970 election?

Mix of Powell’s actions/speech that made others more Conservative, and Heath’s actions appearing strong (ideal leader).

Fears of end of post war consensus sent further support to new Conservative ideas → Heath = confident of victory.