1974 and 1979 key stats

Industrial Relations

* Winter of Discontent 1978-9
* Dec 1978 Ford workers 3-month strike and won 15% pay increase. Strikes from NHS workers, transport workers, and even gravediggers put a halt to the British economy.
* 29.4 million days lost to strikes in 1979.
* Labour funding was primarily from the unions.

Modernising the economy

* 1976 IMF loan of $3900 million.
* To secure it, govt spending to be cut by approx £2 billion - Deepened rift between Labour leadership; left of party, led by Tony Benn, opposed the loan and the austerity measures

Economic strength

* Denis Healey (1974-79 Chancellor) introduced 1975 Budget and formal incomes policy to tackle inflation; led to decrease in average level of wage increase from 26% in 1975 to 10% in 1977
* Inflation at 25% in 1979.
* Unemployment 1.3 million by 1976.

Leadership style

* Guadeloupe Summit: bragged of swimming in tropical seas, denied that there was a “mounting crisis.”
* Led to The Sun’s headline “Crisis? What crisis?”.
* Opposed to Thatcher’s style. Party Political Broadcast in April 1979 emphasised a belief in the British people, acknowledged failures, and said Callaghan’s socialism was at odds with British values.

Scotland and Wales

* Growth of Welsh and Scottish Nationalism - Growing support for the Scottish National Party and the Plaid Cymru party saw both parties advocating greater autonomy from the British Gov. Govt had only won support of Plaid Cymru and SNP in parliament by promising to devolve some power to Wales and Scotland. Lost their support after inaction.
* Devolution's failure - March 1979 referenda in Wales and Scotland, failed to win enough votes for devolution. Nationalist MPs felt let down by govt and by the end of March, joined Conservatives in voting against govt in a no-confidence motion (Labour lost by single vote)