A-Level History: Britain 1964-79

Why did Labour win the 1964 election? : The economy

Unemployment reaching a peak of 879k in 1963 – although this started to come down during 1964, there was not enough time for the economy to improve (this is important because economic prosperity was integral to tory dominance during the 50s)

'Stop-go' policies led to little long-term economic growth – significant as this was during a time where mainland Europe had more GDP growth; Italy with 5.6% compared with Britain with 2.3%

Why did Labour win the 1964 election? : economy evaluation

HOWEVER: as this mainland Europe was more affected by WW2 their economy had shrunk significantly and therefore was easier to grow at a faster rate

HOWEVER: the economic downturn in 1963 started to improve by 1964

HOWEVER: people felt more well-off because of of a 2.5p and 3.75p decrease in income tax in 1955 and 1959; the availability of credit led to an increase in consumption, a 500% increase in car ownership, 4 - 91% TV ownership

HOWEVER: Maudling cutting taxes is why the results were so close

Why did Labour win the 1964 election? : Tory outdatedness

Douglas - Home was not voted into power, so he did not have a mandate, and him coming to power showcased the 'old-boy network' - had to give up his peerage in order to become PM

Multitude of scandals - the Argyll scandal was the epitome of elitism because it involved the duchess of Argyll who committed adultery with 78 people, including 2 government ministers - it not only alienated Tory voters who believed in traditional values and exacerbated the elitist image

Most of all the timing of the election happening so soon after the Profumo scandal - same impacts of adultery and also the fact that Profumo revealed to lie and claim not guilty in the house of commons - Macmillan looked incompetent

Why did Labour win the 1964 election? : Tory outdatedness evaluation

However people liked Douglas-Home for his honest nature which contrasted Harold Wilson who was seen as politically cunning

Why did Labour win the 1964 election? : Labour strengths

Harold Wilson glossed over divisions over nuclear weapons, Europe and nationalism by presenting Labour Party as modern, dynamic and progressive.

The manifesto promised a range of policies to promote faster economic growth, full employment and improved welfare and health services."white heat"

Wilson personified the new progressive Britain in which talented people from humble backgrounds could succeed – he was a former teacher of economics at Oxford and cultivated his image as a man of the people – a Yorkshire-born grammar-school boy and football fan. Appeared to be the kind of classless professional the country wanted.

How successfully did the 1964-70 gov solve its problems?: Power of trade unions

- In Place of Strife 1969 failed as TUC against - 50 Labour MPs rebelled during the House of Commons

- The Labour government faced constant pressure to protect union interests, making it challenging to implement reforms. The tensions highlighted the struggle between union power and the government's ability to govern effectively.

How successfully did the 1964-70 gov solve its problems?: Economy

- The National Plan was initially successful – combined with the successful deflationary measures, it contributed to Labour's 1966 victory (4 – 96). Showed Wilson's government had a coherent plan for the future. HOWEVER, the treasury also wouldn't co-operate the National Plan; National Plan was closed in 1969

- Devaluing the pound 1967 £1 = $2.80 to $2.40 was humiliating; Roy Jenkins replaced James Callaghan as the Chancellor of the Exchequer; Wilson seen as hypocritical as he ruled it out 3 years prior, as Labour had become known as the party of devaluation from Atlee. - Jenkins increased taxes by £923 million and restored NHS prescription charges, which Wilson had abolished earlier in 1964. - able to change £800 million BoP deficit into a surplus, which was important as the deficit discouraged foreign investment

How successfully did the 1964-70 gov solve its problems?: Economy judgement

- National Plan ultimately failed

- Devaluing the pound was more of an economic success than a political success but deflation and tax cuts (March 1968) were still required

How successfully did the 1964-70 gov solve its problems?: Foreign affairs

- Internal divisions surrounding Europe reduced as Euro-sceptics, e.g., Foot happy they had been rejected

ULTIMATELY: the rejection in November 1967 meant they couldn't capitalise French growth 5.8 vs 3.1%

-Acting as an 'honest broker' through keeping troops out of Vietnam but not explicitly condemning USA

How successfully did the 1964-70 gov solve its problems?: social reforms

- Many changes were made after 1966 election.

• Equal Pay Act 1970, which helped women live more independently

- Abolition of the Death Penalty (1965) and the Sexual Offences Act (1967), which legalised homosexuality between consenting adults in private.

Traditionalists against number of reforms – e.g., Mary Whitehouse got 400k supporters against BBC's use of sex, violence and foul language

Why did the Tory government win the 1970 election?: Disillusionment of Labour voters

The labour voters had become so fed up with the way that Wilson was dealing with the party.

- The disillusionment of the voters can be seen where, between 1966 and 1970, 900,000 votes were lost and the membership of the party fell by 150,000.

- There was also a 3% lower voter turnout despite the extra eligible voters due to the voting age going down to 18 in Representation of the People Act in 1969

Why did the Tory government win the 1970 election?: Tory strengths

The Conservatives developed a set of ideas; Heath pledged to reform industrial law in order to reduce the number of strikes that were taking place. This was a popular policy, as the vast majority of people were extremely fed up with the way the trade unions had essentially walked over Wilson.

- Heath also pledged to reduce government spending on nationalised industry to control inflation. Popular with the public, as under Wilson inflation had risen by 33%.

- Likely to join EEC due to pro-European stance that previous governments, 1961, were unable to do

- Heath also made himself look like a competent leader with the sacking of Enoch Powell from the Shadow Cabinet for his "rivers of blood" speech in 1968. Heath did, however, allow Powell to run for office in Birmingham and take many white working-class votes from the Labour voters who were angry with Labour immigration policies. This showed the strength of Heath's leadership, as he was able to discern what would take votes away from Labour.

Why did the Tory government win the 1970 election?: Labour record in office

- Wilson made too many promises that he had to go back on, and this gave his government the reputation of being untrustworthy, e.g. Wilson promised the "pound in your pocket" would not be devalued however, he then proceeded to devalue it (1967 - $2.80 to $2.40), which not only made him untrustworthy but also highlighted his weak economic policy, forcing people to look to the Conservatives and the strength of their economic policy – especially significant as Atlee government did it and was unpopular

- Possibly the biggest issue with Labour's record in government was the failure of 'in place of strife'.

- This demonstrated a very poor control of the party by Wilson, as he could not control the trade unions or the rebels that supported them.

How far did Heath follow-through his aims and policies?: lame ducks

Heath wanted to reduce state intervention in industry and refuse to rescue lame ducks.

- 1971 - Aircraft Division of Rolls-Royce, facing bankruptcy: was nationalised because it was vital to Britain's defence industry. Heath was unprepared to let unemployment increase at the price of reducing government expenditure, which explains his U-turn in policy.

- 1972 – The gov granted £35 million to Upper Clyde Shipbuilders to safeguard its 3000 jobs.

How far did Heath follow-through his aims and policies?: controlling trade unions

- Stood with the Industrial Relations Act of 1971 throughout time in office

- Extra 10 million days lost in miner's strike of 1972 and wanted a 47% increase in their wages

(days lost 1970-74 was double 1964-70)

- Led to 3 day weeks where industrial output halted and TV curfew of 10:30

- Agreed to 21% wage increase – much higher than inflation

How far did Heath follow-through his aims and policies?: Europe - boost economic growth

After being blocked twice in the 1960s, he was able to get the UK to join the EEC 1st January 1973

HOWEVER: had to subsidise french farmers and only because CDG left

HOWEVER: the UK acted as a net contributor, giving in 20% but only getting 8% out

What problems did the 1974-1979 election face?: wages and inflation

- Miners’ strike in 1974 led to a 29% pay increase for miners. Wages rising faster than growth = inflation reaching 25% by the middle of 1975.

What problems did the 1974-1979 election face?: national bankruptcy threatened

- Balance of payments deficit: the Bank of England bought pounds on foreign exchanges to try and prop up their value, but this threatened to use up the nation's currency reserves. National bankruptcy threatened.

What problems did the 1974-1979 election face?: national bankruptcy threatened - how did they try to solve it?

Sep 1976: Healey asked the IMF for a loan of $3.9 billion. The government was required to cut spending by approximately £2 billion. politically damaging, as it portrayed the government as weak and unable to tackle its own problems without aid. deepened rift between Labour leadership and left of the party

significantly raise taxes, cut spending and limit wages in order to stop inflation

What problems did the 1974-1979 election face?: political problems

- only slender majority of 3 made it difficult to pass reforms

- Bi-election losses led to losing their majority by 1977

- TEMP FIX – 13 liberal MPs chose to support the Labour gov until 1978 in March 1977 in order to pass laws (Lib-Lab pact)

• vote of no confidence 1979

What problems did the 1974-1979 election face?: wages and inflation - how did they try and solve it?

- The social contract (1974 - 1978) aimed to put in place a voluntary wage restraint in return for repealing the industrial relations act

- 1975 – more formal pay restraint policy of £6 per week – with a freeze on higher incomes (further alienating wealthy people) – and then to £4 in 1976 so wage increases fell from 27% per year in 1975 to 10% in 1977

Why did the winter of discontent happen?

- Power of trade unions

- Long-term economic problems, Inflation which peaked at 25% in 1975, which created pressure for wages increases

- Lack of majority made it difficult to solve issues

What happened during the winter of discontent? - consequences

- In Autumn 1978 the TUC rejected the gov's proposal of a 5% limit for wage increases

- Ford workers launched a 3 month strike and won a pay increase of 15% – leading to a wave of strikes

- In January 1979 NUPE – who represented the lowest-paid council workers – then went on strike demanding a 40% pay rise

- Rubbish was piled on streets, bodies were left unburied – public display of the country being in disarray (public mood dropped)

- Brought to an end in March 1979 with pay increase averaging at 10% – well above the government's target

How successfully did the 1964-70 gov solve its problems?: reducing Labour divisions

- Cabinet included prominent figures from both the left and the right of the party e.g. George Brown and Barbara castle

- 'white heat' of technology was an attempt to unify the party under a progressive economic vision

HOWEVER: 50 Labour MPs against In Place of Strife,

1970 election % of vote and majority

In the 1970 general election, the Conservatives received 46.4% of the vote, Labour 43.1%, securing a majority of 30 seats over Labour.

1974 election % of vote and majority

Feb – Labour -37.1%, Conservatives 37.9%, resulting in a hung parliament

Oct – Labour – 39.2%, Conservatives – 35.8%, giving Labour a majority of 3 seats.