Labour governments of wilson and callaghan

what were the problems facing harold wilson by febuary 1974?

He had a less prominant position:

• economic- inflation was at 15%

• balance of payment defict was £3 billion

• Trade unions needed to be dealt with

• The situtuion in Northern Ireland was becoming way worse

• he had a minority government so had hard time to try and pass legisaltions

• labour was not united (EEC Application)

• Miner’s strikes - how do they put on electricity

• Wilson was older and less enegertic

What was Wilson’s only solution?

TO CALL A ANOTHER GENERAL ELETION

Who was Micheal Foot

• 1913-2010

• Born in plymouth into a political family

• Studied PPE at oxford

• Joined labour @ age 22

• worked journalist for new statesmen and tribune

• elected in plymouth 1945- lost his seat in1955 and the re-elected for blaney-gwent

• sectartary of state for employement n(1971-1976)

• Became labour leader in 1979 till 1983

what did wilson do to attempt to heal industrial relations

• 1973 (whilist in oppostion) he negiotated the Social Contract with the unions

>repeal the industrial relations act

> end of the 3 day working week and the state of emergancy

• Denis healey - issued 2 new budgets to hepl deal with the economic problems

what was the union’s response to wilson’s attempts to fix industrial relations?

• the agreed to it quickly

• easier to strike

• pay rise

• sympathetic ministers in govt e.g foot and Benn

what was the cycle 1970’s britian was trapped in?

INFLATION → WORKERS WANT PAY RISE → GO ON STIKE → GOV GIVES IN AND GIVES PAY RISE

what was the first economic problem that wilson had to deal with?

Was the large wage increases that were deemed necessary to get out of the industrial crisis that had brought down heath

what did the chancellor dennis healey do in january 1975?

He made a speech in Leeds to give stern warnings of the dangers:

• the wage inflation caused unemployment and was vital for public spending

What was imposed by healey’s budget in april 1975?

A steep rise in taxation and public spending

what was set up by Tony Benn in 1974?

• The national enterprise board whcih was used to adminster the governments share holding in private companies

• give financial aid

what was becoming apparent around NEB by 1974?

it’s effectiveness was being questioned

what did the government nationalise?

• decided to nationalise the car manufacture British layland which caused controversy about the role of the government in resuring ‘lame duck industry’

What was happening with the Social Contract?

• it was not limiting wage demands

What happened to the Social Contract?

• by 1975 a more formal pay restiant was introduced this made the party more divided

What did the left of the labour party do?

Left wingers like Micheal foot and tony benn did not want to put pressure on the unions and they did not want to decrease the lack of state intervention in industry

what did harold wilson do in march 1976?

He resigned as labour party leader and prime minister

what was the british layland?

• founded in 1968 it wa spart of a merger of car manufactors encouraged by tony benn

• part nationlised → UNDER BENN in 1973 after the oil crisis

• full privatised in 1986 as rover birtish company until sold to BMW

• famed for producing poorly designed and poorly maufactured cars campared to rival germany italy and japan