Chapter 5 - Labour and Conservative governments, 1964–79

What was the result of the 1964 election?

Labour won with a 4 seat majority

(Wilson) Labour: 317 seats

(Douglas-Home) Conservative: 304 seats

What were Labour strengths in 1964?

• Seemed more united due to Wilson presenting the Labour party as modern, dynamic & progressive

• Wilson promised to Britain into the “white heat of technology” so modernising

• Wilson was from a grammar-school in Yorkshire making him seam more reasonable than other, Conservative leaders

What were Conservative weaknesses in 1964?

• Economic problems from the early 1960s (balance of payment crisis) (878,000 unemployed in 1963)

• Douglas-Home was out of touch

• The Profumo Affair

What was the revival of the Liberal Party?

• Middle class voters who didn’t support Conservative but weren’t left like Labour

• Orpington by-election result in 1962 where Liberals won over Conservative

• Doubled ther vote between 1959 and 64

What were the changes to British society in the 1950s?

• Living standards improved in the 1950s with a more consumerist economy

• Plays, novels & TV examined the class structure

• Pop music & cinema challenged attitudes towards gender

• Grammar schools gave pupils opportunities from underprivellaged backgrounds

• Labour became significantly more popular with voters under 44

Reasons for it being so close:

• Douglas-Home’s leadership wasn’t that bad as he was trustworthy while Wilston was seen as always being neutral and picking the safe route

• Conservative tax cuts led to a trade defecit of £800m which would also lead to -600k unemployed people which led opinion polls to show a Tory lead

• Labour party being untrustworthy due to their: internal divisions, handling of trade union strikes, commitment to nationalism, new leaders, handling of foreign policy as the conservatives were doing good since Eden, conservative racism genuinly led them to win a campaign in Smethwick

What were the divisions within the Labour party like?

Left

• More sectors under state control

• Removing the class system, independent schools & House of Lords

• Remaining outside the EEC

• Abandoning nukes

• Decolonisation

• More independence from US control

Right

• Left policies would risk an election loss

• More economic growth & a fairer distribution of wealth

• Joining the EEC

• Retaining nukes

• Close alliance with the USA to guarantee national security

• Less nationalism

What did the Labour party do about their small majority?

• Called another election in March 1966 where they won a majority of 96

• This showed that Wilson had strong leadership & was liked

Labours social reforms:

• November 1965 - Murder - Abolishing the death penalty

• November 1965 - Race Relations - Discrimination in public facilities was made illegal

• June 1967 - Family Planning - Contraception avaliable for free on the NHS

• July 1967 - Sexual Offences - Homosexual acts allowed in private

• October 1967 - Abortion - Abortion under certain conditions legalised

• April 1968 - Race Relations - Race discrimination in housing & employment made illegal

• July 1968 - Theatres - No more censorship of plays

• May 1969 - Voting - Voting age lowered from 21 to 18

• October 1969 - Divorce - Divorce process simplified & made less costly

• May 1970 - Equal Pay - Men & women would receive equal pay for the same work

These all led to more people travelling & reduced divisions between social classes. There was more education & a higher standard of living with less respect for tradition. A youth culture was developing with the civil rights movement in the US with more female employment giving women equality

Impacts of the Race Relations:

• Arrivals from the Commonwealth found only low-paid jobs & in working class areas

• This made immigration unpopular in inner-city areas

• This had a fear of competition for lower wage jobs

• Labour then tightened the rules on immigration in 1965 and 1968

Impacts & Response to the education policy:

• Good response as many people saw giving more opportunities as a good thing

• However the compreshensive system led to controversy over grammar schools seen as becoming private schools

• Douglas-Home’s government had implemented the reccomendations of the 1963 Robbins Report (expansion of university)

• Introduction of the Open University (1969)

What happened during the Vietnam War?

• Wilson saw economic recovery & security as dependent on their US relation

• The left of his party was against the radical US invasion of Vietnam

• Wilson refused to send troops and publically criticised heavy US bombing of Vietnam in June 1966

What happened in Southern Rhodesia?

• Wilson had to handle the ilegal declaration of independece in November 1965 by the white minority government

• Left & the Commonwealth countries wanted the government to send troops to crush te rebellion

• Instead the government used economic sanctions to end it

• Wilson then optimistically thought that personal diplomacy would work & leaving Ian Smith in power if a majority rule was introduced in the future

• Smith refused this which saved Wilson as it would of left a minority government in power (and lowk racist) but still was a bad look cos he proposed it

What happened with the EEC?

• Wilson believed he could persuade de Gaulle who had vetoed Britain’s application to the EEC in 1963

• He failed & in November 1967 de Gaulle repeated his veto

• Wilson did suceed in maintaining party unity over Europe tho cos pro-europeans were pleased he applied & anti-europeans were pleased by its failure

How was Wilson at managing the Labour Cabinet?

• He avoided splits on foreign issues to pass social policies

• Gave ministerial jobs to senior party figures which pleased them but led to conflicts between personalitites

• In 1969 the government tried to reform industrial relations but the minister of defence & there was infighting

What were the possible economic policies of the Wilson government 1964-70?

• Deflation - Tax rises/cuts in government expenditure which would decrease the import bill

• Devaluation - Reducing the exchange rate of the pound to dollar which would make British products cheaper & boost exports

Why did Wilson not chose devaluation?

• It would reduce savings of everyone

• It would be associated as the easy way out

• He didn’t want to upset the Americans

What was The National Plan (Sept 1965)?

• There was a new ministry made (Department of Economic Affairs)

• Set 2 targets for British industry

  • Annual growth of 3.8% over 6 years

  • Increase in exports by 5.25% each year

• The government would create a new board that judged if wage increases were viable

• Provided investment funds for the modernised industry

Why did National Plan not work?

• The treasury guarded its role of government economics & didnt co-operate with the Department of Economic Affairs

• The spending targets were undermined by deflationary measures

• The board for judging wages had no power to enforce decisions

However it did cause a success in the 1966 election as it showed a vision for the future

Why did devaluation happen in 1967?

• The sea men began a strike in May 1966 demanding a pay increase that wouldn’t work

  • This strike damaged British exports & led to poor trade

• Unemployment was unusually high (2.5m in 1967) which put pressure on the pound

• 18th November 1967, the pound was devalued from $2.80 to $2.40

What were the successes of devaluation?

• It didn’t succeed at all & Callaghan was replaced as chancellor

• It caused all British forces in Asia to be withdrawn by the end of 1971

• Prescription charges were reintroduced

• School leaving age was delayed by 2 years

• Tax was increased

What were the industrial issues in the 1960s?

• Strikes disrupted production

• Trade unions argued that the government were investing in the wrong industries

• They limited wages which didn’t help low-paid workers

• Unions had no restrictions

What was In Place of Strife?

• A principal that proposed sanctions on trade unions

• Employees would have to join a trade union

• The government could deny a strike if it was a serious threat to the national interest

• The governemnt could order a return to work for 28 days

• Workers who were unfairly dismissed would be entitled to compensation

• There were legal sanctions to not following all this

Impacts of In Place of Strife:

• The decline of the Labour party

• Increase in unions of health & teaching

• Many private employers discouraged union memebrship

What was the result of the 1970 general election?

Conservatives won with a 30 seat majority

(Wilson) Labour: 288 seats

(Heath) Conservative: 330 seats

Why did Labour lose the 1970 election?

• Wilsons complacency - He was too relaxed & the poor trade figures before election day dented his claims

• Disillusionement of Labour supporters - Party membership fell from 830k-680k, foreign policy was too supportive of the USA, too much money was spent on defence, the economic issues persisted, abandoning the working class with in place of strife

• The failure of In Place of Strife - Trade unions were seen as selfish & had more power than the government due to the defeat

Why did the Conservatives win the 1970 election?

• Policies - A new industrial relations law to reduce strikes, less state intervention in industry, no more controlling prices, applying to the EEC

• Heaths leadership - Attacked labours economic record as inflation had risen by 33% and unemployment by 200,000+, Heath sacked Enoch Powell from the shadow cabinet due to the rivers of blood speech

What were Heath’s aims as PM?

• Strengthen the economy

• Change industrial relations

• More regional development

• Join the EEC

How did joining Europe work in 1973?

• Parliament debated it in October 1971

• Conservatives, 39MPs voted against, Labour 69MPs voted for so Heath had a majority

• Heath believed that this would lead to European unity & would stimulate modernisation

• Britains application was more successful as de Gaulle had left office in 1969

• For Britian to join they had to sacrifice any trade deals with the commonwealth & accept the EECs policy for subsidising French farmers

What was the Industrial Relations Act in Aug 1971

• Workers would be able to chose to join a trade union

• National Industrial Relations Court & Industrial Relations Comission was established

• Trade unions had to regiser with the NIRC and IRC which would imrpove rights of recognition by employers

• Members in a registered unions would give better protection against unfair dismissal

• Unions would be liable for claims

• The Government could order a pre-strike ballot & have a cooling-off period of up to 60 days

How did the Act fail?

• The act was unpopular & the TUC (Trade Union Congress) would boycott this & defy the NIRC

• Many union leaders wanted to destroy the act & bring down Heaths government

Why was inflation so high in the 1970s?

• Nixon ended fixed excahnge rates & devalued the dollar

• The pound’s value was floating

• Worldwide increase in raw materials, food & fuel

• Cutting taxes stimulated demand for goods but pushed up prices

How were the miners strikes in Jan-Feb 1972?

• Wanted a 47% pay increase, the gov offered 8% and in January 280,000 coal miners went on strike

• Government declared a state of emergency & awarded miners a large pay increase

Why was the miners strke successful?

• They were well organised

• There were violent incidencts in Birmingham

• Government didn’t know how to cope during the winter weather

• This encouraged other workers to strike & emphasised the failure of the Industrial Relations Act

What was Heath’s U-turn in 1972?

• They set out to have no state intervention in industry

• In 1971 the aircraft division of Rolls-Royce was nationalised when it was facing bankruptcy

• The government granted £35m to shipbuilders to save 3000 jobs in Feb 1972

• A ministry for Industrial Development was setup to provide aid for industry in deprived areas

What was the oil price shock of 1973?

• Egypt & Syria went to war against Israel in October 1973

• ME countries cut oil supplies as they though the West was funding Israel

• In Nov 1973 the miners began a ban of overtime

• The UK dependend on oil for 50% of its energy so needed miners to work overtime

• Heath declared a state of emergency on the 13th of December 1973 & introduced a 3 day work week from the 1st of Jan 1974

How did the 3 day work week work?

• Electricity was provided to indsutry & buisnesses only 3 days of the week

• A 50mph speed limit was introduced to save petrol

• TV was requried to close down at 10.30pm

What was the result of the Feb 1974 election?

Labour won with no majority

WIlson (Labour) - 301 seats

Heath (Conservative) - 297 seats

What was the social contract?

• Agreement in 1973 between the Trade Union Congress & the Labour Party

• Unions agreed to co operate to control wage increases

• Government promised to keep prices down & improve welfare benefits

• Return to a free collective bargaining over wages & no income policy

• This did not stop wage increases though

Why was Labour divided?

• Michael Foot was the Department of Employment who had very socialist ideas

• Tony Benn was secretary of state for industry and opposed nukes with strong socialist beliefs

• They were divided over Europe & held a referendum where Britain would contribute less to the EEC budget

Why did Wilson resign?

• March 1976 Wilson resigned at 60

• He saw his memory was failing him

• James Callaghan replaced him

How was economic stagflation?

• Inflation reached nearly 30% by mid 1975

• There was a world recession on British exports & economic growth slumped with unemployment increasing to 1.3m in 1976

• Chancellor Healy’s budget increased tax & cut government spending programs

• There was a formal income policy at a £6 a week ceiling on wage increases which the TUC reluctantly agreed with

• This was reduced to £4 a week with a fall in wage increases from 27% in 1975 to 15% in 1976 and 10% in 1977

What was the IMF loan 1976?

• Healey asked for an IMF loan of £3.9Bn which would require the government to cut spending by £2Bn

• This would secure the value of the pound but caused a labour leadership rift

What was the Lib-Lab Pact (1977-78)

• 13 Liberal MPs would support the government as Labour were that split

What was the winter of disconent?

• Unions disliked Healey’s policies as they were abandoning social contract

• Ford woekres won a 15% pay increase afte ra 3 month strike which lorry drivers followed

• Dustmen & gravediggers demanded a 40% pay increase which led to rubbish piling up on the streets

• Callaghan was out of touch & spen ta week in early June in the West Indes where the media spread that he was unaware of the crisis

• The strikes were settled by pay increases adding to the public perception that the Labour gov couldn’t control the unions

How did hte Labour government end?

• A refarenda in Wales & Scotland failed to win enough votes in favour for Labour

• This caused support to fall badly & the Conservatives voted against the government in a no-confidece motion which the government lost by 1 vote