Economy 4 timeline

1940-45  

Wartime Coalition  

(Con, Lab, Lib)  

• 1939-45 UK economy contracted by ¼ and trade fell by 2/3. 

• 1940 1 million people unemployed. 

• Military spending rose to 51% of the national income by 1945

1945-51 Labour Attlee 

• 1945 - Britain owed £4bn to USA​ 

• 1945-64 Unemployment averaged 1.6% 

• 1945Keyne getss  3.7 US billion loan  

• 1946 Unemployment only 2.5% Nationalised industries employed 10% of all workers 

• 1946 – Bread rationed; Coal and Bank of England nationalised 

• 1946-50 exports or die exports up 80%  

• ½ new factories in formerly depressed areas  

• ​1946-47  Winter fuel crisis and currency crisis  

• 1947-8 – Transport and Electricity nationalised; Gas nationalised; Marshall 

• 1948 -50–Marshall Aid 

• 1949 – Iron and Steel nationalised; union leaders sat on 6 government committees​ 

• 1949 – 2^nd balance of payments crisis forced to devalue pound  

• 1951 exports up 150% compared to 1938 Wages up 6%  

• Inflation 3%  

1951-7 Xhurchill & Eden

1951-53 ‘stop’ policies interest rate 4%  

1952 Inflation 9% 

1951 – 20% of economy under state control; Conservatives denationalised steel and road industries​ 

1953-54 ‘Go’ policies 

1954 – post-war boom begins; rationing ends. Inflation 1.8% 

1955 – July – unemployment just 1% of workforce 

1955-7 interest rates increased VAT introduced.   

1956 inflation 4.5% 

1957-63 Mcmillian 

1958 Thorneycroft resigns  

1958 London Bus Strike  

1959 – wages on average twice what they had been in 1950 

1959 inflation 0.6%  

1960 Britain spending £1.5bn on consumer goods 

1960-61 ‘stop’ policies 10% increase in VAT, gov pay freeze.  IMF loan  

1962-64 tax cuts

1963-64  Douglas Home 

1964 BoP £400 million deficit 

1964 - Wilson

Budget deficit of £800m when Wilson takes office