Ch. 5 Labour and Conservative governments 1964-1979

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1964 election

Harold Wilson (Labour) beats Douglas-Home (Conservative) by a majority of only 4 seats

this is the end of the Conservative domination period

Why did Labour win the 1964 election?

• Wilson's leadership

• Conservative image

• revival of the Liberals

• social changes in the 1950s

Labour won the 1964 election due to Wilson's leadership

Harold Wilson succeeded Gaitskell at 47 years old, and appeared young and energetic. Wilson presented himself as a 'man of the people'.
Wilson was able to present the Labour Party as dynamic and young, and the Party's manifesto promised attractive policies concerning economic growth, education, and technology.

Labour won the 1964 election due to Conservative's poor image

Voters associated the Tories with the economic problems that were growing in the 1960s: rising unemployment, inflation, and growing industrial unrest.
The Conservatives were seen as old-fashioned and undemocratic, and aristocratic Home was far less relatable than Wilson, especially considering the sex scandals during the last year of Macmillan's premiership.

Labour won the 1964 election due to the revival of the Liberal Party

The Liberal Party attracted many middle-class voters who wanted to protest against the Tories, but were not prepared to vote Labour. The Liberals received more attention and funding, and though they only won a small number of seats, it was enough to take key votes away from the Conservatives.

Labour won the 1964 election due to social changes in the 1950s

The rise in living standards made people more independent, especially the young. Combined with popular culture which increasingly challenged conventional attitudes through film, music, and satire, the younger generation became less accepting of authority and aspired to create a modern, classless society.

How successful was Labour in government 1964-1970?

• social reforms

• foreign policy

• economic policy

• industrial relations

Labour's social reforms

• race relations

• education

• Roy Jenkins 'the civilised society'

Labour's social reforms: race relations

1968 Commonwealth Immigrants Act tightened the restrictions that the Tories had introduced in 1962.
The Race Relations Acts of 1965 and 1968 were both largely unsuccessful as they were difficult to enforce, and so had limited impact

Labour's social reforms: education

From 1965, Education Secretary Anthony Crossland began replacing the tripartite system with comprehensive schools, which was bitterly criticised by areas with popular grammar schools.
However, the implementation of the (Conservative) 1963 Robbins Report was much more successful, which introduced new polytechnics, and expanded several unis. It predicted that student numbers would quadruple by 1980, which turned out to be an underestimation

Labour's social reforms: Roy Jenkins

Roy Jenkins introduced several radical social reforms, collectively termed 'the civilised society'
- the 1965 Murder Act
- the 1967 Abortion Act
- the 1967 Sexual Offences Act (homosexuality)
- the 1969 Divorce Act
- the 1970 Equal Pay Act

Labour's foreign policy

• The Vietnam War 1965

• Southern Rhodesia 1965

• Europe (EEC) 1967

Labour's foreign policy: the Vietnam War 1965

Wilson believed that a close alliance with America was key to Britain's strength and so wanted to appear supportive, but he also knew that the aggressive US tactics in the war were firmly opposed by the leftists in his Party.
Wilson tried to appease both sides, by publicly announcing British support for America's anti-communist stance against Vietnam, whilst refusing to send British troops and criticising the US's heavy bombing tactics. This ultimately pleased neither sides and was unsuccessful.

Labour's foreign policy: Southern Rhodesia 1965

in 1965, the British colony of Southern Rhodesia (modern-day Zimbabwe) declared independence. The government leader, Ian Smith, was concerned by Britain's rapid decolonisation, and started a rebellion. Wilson first tried to wear Rhodesia down with economic sanctions, which failed, and so decided to offer a risky compromise, proposing that Smith could stay in power as long as majority rule was introduced at some point in the future. Smith refused, and Rhodesia spent the next 15 years in civil war. Although Wilson failed, he at least appeared as an attempted peacemaker.

Labour's foreign policy: Europe 1967

Gaitskell had opposed Britain joining the European Economic Community (EEC), but Wilson launched Britain's second membership application in 1967. Again, de Gaulle vetoed Britain's application on the matter.
Wilson did achieve some party unity, because the pro-Europeans were happy that he tried, and the anti-Europeans were happy that they were rejected.

Labour's economic policy

• Britain's economic difficulties

• deflation 1964

• the National Plan 1965

• devaluation 1967

Labour's economic policy: Britain's economic difficulties

In 1964, Labour inherited several economic issues:
- a lack of competitiveness
- spending deficit (BoP debt was £800m)
- inefficient industry
- powerful trade unions
To combat this, Wilson could either reduce inflation through tax rises and spending cuts, or devalue the pound to boost exports

Labour's economic policy: deflation 1964

James Callaghan negotiated foreign loans to prevent a run on the pound, and increased taxes on alcohol and tobacco. (ultimately successful)

Labour's economic policy: the National Plan 1965

Wilson created a new department, the Department of Economic Affairs (DEA) and set George Brown in charge, who created the National Plan.
The National Plan aimed for an annual growth rate of 3.8% over 6 years, and increase in exports to eliminate the BoP deficit.
The National Plan at first seemed successful, and contributed to the Labour victory in the 1966 election.
However, the National Plan ultimately failed as the Treasury refused to cooperate, and the DEA soon gained the nickname 'Department of Extraordinary Aggression'.

Labour's economic policy: devaluation 1967

the 1966 seamen strike for higher pay damaged Britain's exports and threatened another run on the pound. As well as this, in 1967 there was an unemployment figure of 2.5 million.
Wilson was forced to devalue the pound by 14%, and stupidly in a TV broadcast to the nation, he announced that 'it doesn't mean that the pound in your pocket has been devalued'. The public saw right through this.
Callaghan quickly resigned and swapped jobs with Roy Jenkins. Jenkins went ahead with further tax rises and spending cuts, and by 1969 there was a BoP surplus and the pound's value rose!

Labour's industrial relations

• conflict between the government and trade unions

• 'In Place of Strife' 1969

Labour's industrial relations: conflict between gov + unions

the economic problems of the 1960s weakened the relationship between the government and trade unions
Wilson believed that unions' strikes for higher pay were harming productivity.
Any strikes in nationalised industries could cause nationwide disruption, giving the unions bargaining power.
Wilson had to be mindful, because the unions had always been allies, and major funders, of the Labour Party.

Labour's industrial relations: 'In Place of Strife' 1969

principal policies:

• Employees would have a legal right to join a trade union

• Workers who were unfairly dismissed would be entitled to compensation or to get their jobs back

• The government could order a ballot to be held before a strike if it believed there was a serious threat to the national interest

• In an unofficial dispute the government could order a return to work for a 28-day 'cooling-off' period

• Disputes between unions could be referred to an industrial commission whose decision would be legally binding. There would be financial penalties if the commission was not obeyed

The TUC and left-wing MP's were outraged by Barbara Castle's proposals, arguing that they completely undermined the principles on which the Labour Party had been created.
As a result, Wilson was forced to back down, humiliated.

1970 election

Edward Heath (Conservative) wins the election against Wilson (Labour)

Why did Labour lose the 1970 election?

• Wilson's complacency and his ‘kitchen cabinet’

• the disillusionment of Labour support

• the failure of 'In Place of Strife'

Labour lost the 1970 election due to Wilson's complacency

Labour's campaign and slogan 'a safe pair of hands' hardly presented them as bringers of radical change.
The opinion poll before the election which put Labour firmly ahead of the Tories made Labour supporters complacent and overconfident.

Labour lost the 1970 election due to the disillusionment of Labour support

Many Labour supporters were disillusioned by Wilson's government which they saw as too right-wing. They felt that Britain's foreign policy had been too supportive of Vietnam and that too much had been spent on defence instead of welfare and regeneration. This view was reflected in Labour's membership, which dropped significantly 1964-1970.
In 1970, the 'young liberal' demographic of politically-motivated young people and young women (who had previously benefitted from the expansion of university education and therefore supported Labour) were now far more likely to be protesting against the Vietnam war rather than campaigning for the Party.

Labour lost the 1970 election due to the failure of 'In Place of Strife'

Wilson's failed attempt to implement 'In Place of Strife' made him look weak, and caused people to doubt Labour ability to improve the economy.

Why did Conservatives win the 1970 election?

• policy proposals

• Heath's leadership

• the 'Powell effect'

The Conservatives won the 1970 election due to policy proposals

The Conservatives had used their six years in opposition to develop a clear set of policies which appealed to voters, including a plan to reform industrial relations law. They proposed that the government should do less to manage the economy, moving away from consensus politics, and that Britain should try again to join the EEC.

The Conservatives won the 1970 election due to Heath's leadership

Edward Heath, as leader of the opposition, had relentlessly criticised Labour's economic policy, pointing out that inflation had risen by 33% and unemployment by 200,000 since 1964. He also gained a large amount of support from the press.

The Conservatives won the 1970 election due to the 'Powell effect'

In 1968 Heath's Shadow Defence Secretary Enoch Powell raised a debate stirring up racial hatred surrounding immigration. A large number of people supported Powell's message, especially in inner-city working-class areas which had experienced particularly high levels of immigration.

Heath’s aims and personality

the ‘Selsdon man’ - a politician who was a threat to the established consensus, seeking to reverse the progress of the past 25 years and return to ‘greater inequality’. A term created by Wilson and given to politicians like Heath

Heath wanted to apply to join the EEC again

Heath operated his government with a no-nonsense efficiency - he appeared awkward but was dedicated to his role

He enjoyed sailing and music 🙂

the promising start of Heath’s office (1971-72)

the EEC

• Heath believed that being a member of the EEC would stimulate economic development

• Charles De Gaulle left office in 1969, giving Heath a much better chance of success

• Heath worked hard to secure a deal with De Gaulle’s successor, George Pompidou, despite it angering many Conservatives such as Enoch Powell

• when debated in parliament, a band of 69 Labour rebels led by Roy Jenkins gave Heath the majority he needed, and Britain became a full member of the EEC on January 1st 1973

1971 tax budget

• his Chancellor, Tony Barber, cut the standard rate of income tax by 2.5%, which was very popular

• however, to facilitate this, there were a series of unpopular government spending cuts, including the ending of free school milk. This earns Thatcher the name ‘Thatcher — Milk Snatcher’

1972 Local Governments Act

• transformed the structures and boundaries of local councils in England and Wales

Heath’s decline

• the Industrial Relations Act 1971

• inflation

• Heath’s U-turn 1971

• the miners’ strike 1972

• the three-day working week

the Industrial Relations Act 1971

inflation

Heath’s U-turn 1971

the miners’ strike 1972

the three-day working week

February 1974 election