Heath's economic problems

How many Conservative MPs voted against joining the EEC

What early form of an economic system did Heath believe in?

'neoliberalism'

Which company did Heath nationalise to save it from bankruptcy in 1971?

Rolls-Royce

Why did Heath nationalise Rolls-Royce?

Made aircraft and aircraft engines vital for Britain's defence

What did Heath introduce to regulate prices and pay increases?

Price Commission and Pay Board.

Who did Heath have to convince to allow Britain to join the EEC?

New President of France, Georges Pompidou

What year did Britain join the EEC?

1973

Acronym to remember economic problems that Heath faced:

SPICED

What does the SP stand for in SPICED?

Strong Pound

Why was the pound temporarily stronger than the dollar?

Nixon took the dollar off the gold standard.

What was the global impact of Nixon taking the dollar of the gold standard?

Fixed exchange rate system ended

What affect did a stronger pound than dollar have on exports?

Made British exports to the USA more expensive

What did Heath do that caused the value of the £ to drop?

'Floated the £'

What was the impact of 'floating the £'?

Value of the £ dropped

What impact did the value of the £ dropping have on imports?

Made imports more expensive

By what factor did the Yom Kipppur War increase oil prices?

4x

What did Heath do to save Rolls-Royce's aircraft division?

Nationalise it

How did inflation change under Heath?

Increased from 5 - 10%