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Winston Churchill strengths and weaknesses (PM 1951-55)
Strengths - reputation from wartime leadership, international statesman, had able ministers (Eden, Butler, Macmillan)
Weaknesses- uninterested in domestic affairs, age and infirmity
Anthony Eden strengths and weaknesses (PM 1955-57)
Strengths- foreign policy expert, experienced, charming and popular
Weaknesses- inexperienced in domestic affairs, weak leader, sometimes indecisive, ill health
Harold Macmillan strengths and weaknesses (PM 1957-63)
Strengths- reputation from success as housing minister under Churchill, calm, reassuring presence, good on TV, one-nation Conservative, supportive of the post-war consensus
Weaknesses- seen as old fashioned, latterly suffered ill-health
R.A.B Butler strengths and weaknesses
Strengths- one nation Conservative, experienced, responsible for influential policies such as the tripartite education system and review of capital punishment
Weaknesses- divisive and unpopular with some colleagues
Post-war consensus theory
Mixed economy- both government and private business action important
Support for NHS and welfare state
Full employment
Working in partnership with trade unions and employers
Housing under PWC
House building programme- as housing minister, Macmillan fulfilled the Conservative’s pledge to build 300,000 houses a year by 1953
Education under PWC
Continuation of the tripartite system set up by the Butler Act of 1944
Social reforms under PWC
Welfare and NHS continue to be funded
Acceptance of government regulation: Clean Air Act of 1956, Factory Act of 1959
Some more liberal social reform- Homicide Act of 1957, Wolfenden Report of 1957
Industrial policy under PWC
Some key industries remain nationalised, only iron and steel were denationalised in 1953
Conciliatory attitude towards trade unions
Labour divisions- prescription charges
Left wanted there to be none, Right felt it was necessary to introduce charges to respond to financial pressures. Division broke out at the end of the Labour administration, set up the rivalry between Bevan and Gaitskell
Labour divisions- Clause IV
Clause that committed the Labour Party to nationalisation. Right saw nationalisation as only one possible policy, Left wanted it. Trade unions were concerned, Gaitskell tried to amend it at the 1959 conference but backed down in the face of opposition from the Left.
Labour divisions- nuclear weapons
Left supported unilateral disarmament and CND, Right were against. Trad unionists also favoured disarmament and a motion was passed to support this at the 1960 Labour Party conference, but Gaitskell had this reversed in 1961.
Why did the Conservatives lose the 1964 election?
Social change, e.g. youth, immigration, culture, social mobility. Douglas-Home was unelected and a member of the aristocracy, the government became the target of satire.
Scandal, e.g the Profumo affair and spy scandals
Labour unity, deaths of Bevan and Gaitskell, election of Harold Wilson
Conservative failures, growing economic concerns related to balance of payments, stop-go, inflation, rejection of EEC membership, Macmillan’s leadership
Post-war boom
Productivity increased, full employment achieved in 1955, tax cuts and increases in wages- allowed more consumer spending, investment and growth. Rise in living standards encouraged a growth in birth rates. In reality, Britain’s economic growth wasn’t as strong compared to the rest of Europe.
Downsides to the post-war boom
Consistent danger that consumer demand would lead to more imports than exports, leading to a balance of payments problem and a run on the pound
A danger that the economy would grow faster than increases in productivity, leading to inflation as demand outstripped supply
Stop-go economics
When the economy slowed down too much the government encouraged growth by lowering interest rates and allowing wages to rise, and when the economy started to overheat and inflation went up, the government raised interest rates and controlled wage increases
The impact of Suez on economic decisions
Suez exposed economic weaknesses
Some wanted to use monetarism- likely to be unpopular as it meant cuts to spending
Sterling recovered against the US dollar, so the government was able to make big tax cuts in 1959, helping to secure election success, and the economy grew at its fastest rate between 1960 and 1964
Economic instability associated with stop-go
1961- government applied to IMF for a loan and was forced to introduce a pay pause
National Economic Development Council set up in 1961 to plan economic growth
By 1962 a National Incomes Commission was established to manage wages and prices
1963- failure to be accepted into the EEC
Public expenditure cut, e.g. branch lines and saltations closed
By the time of the general election in 1964, there was a deficit of £800 million
Rising living standards
higher wages- men’s average weekly wage went up from £8.30 in 1951 to £15.35 in 1961
Access to credit through hire purchase enabled more people to access new consumer goods such as fridges, cars, and new furniture
Housing improvements- slums were cleared and replaced with new towns
State subsidies to farming kept the price of food low and food rationing came to an end in 1954
What impact did people buying more household goods have?
Household gadgets assisted with washing, shopping and cooking, making women’s lives easier. Watching television became a leisure activity and advertising became more prevalent, especially after ITV was launched in 1955.
What impact did television programmes have?
Television programmes reflected growing affluence and consumerism- programmes about DIY and gardening became popular as people had the means to improve their environment.
What impact did a rise in car ownership have?
Car ownership rose by 25% between 1957 and 1959- this encouraged infrastructure improvement such as the building of motorways which began in 1958 with the Preston bypass.
What impact did rising leisure opportunities have?
Access to cars, increased prosperity and shorter working weeks opened up new leisure, work and holiday opportunities. Holiday camps became extremely popular- on average 60,000 people holidayed each week at Butlins.
Reasons for the decline in deference in the period 1951-1964
Trust in politicians was shaken by the discovery that the government had lied during the Suez crisis
Debates over issues like nuclear disarmament encouraged challenges to established ideas
The behaviour of members of the establishment tainted their reputation
Satire boom, e.g. Private Eye and Beyond the fringe
Number of academic studies argued that lack of social mobility had restricted talent
Angry young men used writings to attack established attitudes- Osborne, Braine, Sillitoe, Barstow
Position of women at home
75% of women were married and the average age at which a woman got married was 21
Their lives tended to be dominated by looking after children, cleaning, cooking, shopping and laundry
Household appliances became more common- between 1957 and 1959 the number of households with a washing machine rose by 54% and a fridge by 58%
Position of women in the workplace
Women tended to be deterred from working, especially once they got married
It was widely believed that working mothers would be detrimental to the development of their children
The government encouraged women to stay at home- Family Allowance
Trade unions also discouraged women from working as they feared the new pool of labour would decrease men’s wages
Some middle class women benefitted from equal pay being introduced for teachers (1952) and in the civil service (1954)
Immigration into Britain
By 1958, approximately 21,000 Commonwealth immigrants had settled in Britain
75% were men working to support family back in their home country
The majority came from the West Indies, India and Pakistan
1.25 million people came to live in Britain in the 1960s
Emigration out of Britain
Many people moved to Australia and North America
Australia offered assistance with travel, jobs and housing
In the 1950s approximately 1.32 million Britons migrated abroad
In the 1960s outward, migration went up to 1.92 million
Attitudes to immigration and racial violence
Race riots in Nottingham in 1958
Notting Hill riots in 1958
Oswald Moseley tried to become the MP for Notting Hill at the 1959 election, standing on a platform of repatriation
Immigrants Act in 1962- limited the number of immigrants allowed to come to Britain
Reasons for the emergence of the ‘teenager’ and youth culture
Booming economy meant full employment and rising wages so young people had disposable income they could spend on themselves
Advertising and the growth of consumerism recognised the new market and created the teenage image
Technological change- the radio- made it easier for a separate culture to develop
End of national service after 1960
Washing machine introduction
Baby boom
Groups in the 1950s
Teddy Boys- early 1950s- wore long coats, narrow trousers, winklepicker shoes, fears linked them to juvenile delinquency and rising crime
Late 1950s- Rockers- leather clothes, heavy motorcycles
Late 1950- Mods- smart suits, scooters, sophisticated pop music
Rivalries between Mods and Rockers led to incidents in Clacton, Margate and Brighton - moral panic
Changing social attitudes
Reflected in popular culture, e.g. Lady Chatterley’s Lover in 1962 and Victim in 1961
Mary Whitehouse- began her moral crusade in 1963, setting up a ‘Clean Up TV Campaign’ in 1964 and the National Viewers’ and Listeners’ association in 1965
Why did Britain not join the EEC in 1957?
Britain wanted to sustain its special relationship with the USA
Britain perceived itself as a world power, not one of many European nations
The different experiences of WW2- Germany and France were defeated but Britain won
The Right preferred to maintain closer ties with the Commonwealth
The left felt the EEC would be a ‘capitalist’ club
Not a popular idea with leading politicians
When was EFTA set up?
1959
When did Britain first apply to join the EEC?
1961
Why did attitudes towards the EEC change so quickly?
Britain had slower growth and productivity than other members
Suez crisis demonstrated Britain’s limited strength in the world and its reliance on the United States
Financial concerns showed weakness
Retreat from the Empire showed a shift in Britain’s perception of its role in the world
USA saw Britain’s potential entry as a way to ensure the EEC resisted USSR influence
When was the first EEC application rejected?
1963
Why did De Gaulle veto Britain’s entry to the EEC?
Feared lessened French influence and increased influence of the USA
Co-operation with the USA and Britain 1949-61
1949- formation of NATO
1950-53- Korean War
1961- Cuban Missile Crisis
Tensions between Britain and America 1949-61
USA did not support Britain during Suez, Burgess and Maclean spy scandal in 1951 made the USA cautious about sharing intelligence with Britain
Debates over the nuclear deterrent
Conservative government wanted its own nuclear deterrent to maintain world power status
1958- creation of CND
1960- Labour conference support for unilateral nuclear disarmament
1960- Britain abandoned the independent Blue Streak missile and became reliant on the US Polaris missile
The Korean War 1950-53
Communist North (USSR and China) invaded the South. UN forces were sent, Britain supplied 90,000 of these.
Suez crisis key events
Eden secretly planned with France and Israel to return the canal to British control. The plan involved an Israeli invasion of Egypt that would allow Britain and France to intervene in a peacekeeping role
29th October 1956- Israel invades Egypt
5th November- British and French troops sent to Suez, they defeated Egyptian forces
Short-term consequences of Suez
Labour opposed the attack and protests were held across the country
Condemned internationally, including by the US
USA could put Britain under financial pressure and Macmillan warned Eden that Britain could not withstand this. Eden declared a ceasefire
Eden resigned a year later citing ill health
Long-term consequences of Suez
Challenged Britain’s reputation as a force for good
Demonstrated Britain’s reliance on the USA
Highlighted Britain’s weak economic and financial position
Threw doubt on Britain’s status as a major world power
When did decolonisation begin?
1947
Reasons for decolonisation between 1951 and 1964
Independence movements- Mau Mau rebellion in Kenya, movements in Malaya and Cyprus
International pressure- the US was wary of imperial power
Financial concerns
Impact of Suez
When did Wilson win the election?
1964 with a majority of 4, called another election 2 years later to gain a majority of 96
Wilson’s ideology and leadership
Modern and forward thinking in comparison to Douglas-Home
Wilson’s appeal to the Left of Labour
Wilson was originally on the Left, having resigned with Bevan over prescription charges
Launched leadership bid against Gaitskell in 1961
Wilson’s appeal to the Right of Labour
Served in Gaitskell’s shadow cabinet
In favour of Britain developing nuclear weapons
As PM he attempted to reform trade unions in 1969
Economic crises between 1951-64
Runs on the pound, rising inflation, balance of payments emergencies, deficit in balance of trade
Deflation and devaluation
Deflation- would prop up streling and prevent a rise in inflation but would essentially continue stop-go policies
Devaluation- would assist with the balance of payment problems by helping Britain’s exports become cheaper but would emphasise economic weakness. Wilson feared Labour being seen as the party of devaluation
What did Wilson do to try and solve economic problems?
DEA set up in 1964, National Board for Prices and Incomes set up in 1965
DEA led by George Brown, set growth targets and created economic planning councils
Both aimed to work with businesses and trade unions to fix wage and price settlements
Why did the Labour governments 1964-70 have limited economic success?
Rivalry between Brown and Callaghan and the Treasury and the DEA
DEA abandoned in 1967
Wilson’s focus on balancing rivals rather than ensuring policy success
Trade unions becoming more left-wing and more difficult to work with over incomes policy
Civil servants not convinced or supportive of the role of the DEA
Leadership of George Brown was unreliable and inconsistent
The economic situation by 1967
Sterling crises in 1965, 1966, and 1967- Wilson was forced to devalue the pound. At the same time, a second application to join the EEC was rejected.
Roy Jenkins introduced deflationary policies that mirrored the stop-go of the 1950s, raising taxes and tightening spending. These were unpopular, but by 1970 there was a balance of payments surplus.
Industrial relations and the trade unions
By 1966, relationships with trade unions seemed to be breaking down
Barbara Castle produced In Place of Strife in 1969- this proposed a 28 day cooling off period before a strike could go ahead, the setting up of an industrial relations court and strike ballots
Trade unions were appalled and many Labour MPs threatened to rebel
The government backed down
Other domestic policies
Wilson won the 1964 election by promising a ‘white heat of technological change’ in which scientific innovation would help overcome Britain’s low productivity. There were some successes such as the Concorde partnership with France but economic issues overshadowed developments.
The beginning of the Troubles
Growing evidence of discrimination against Catholics in employment, housing and politics, and by the RUC
1968- civil rights marches held to protest against discrimination were attacked
Some Protestant Unionists feared the IRA would start a new campaign of violence
1969- loyalist Apprentice Boys march was attacked by nationalists
Battle of Bogside
August 1969- Labour government sent British troops to Northern Ireland to keep the peace
The end of the post-war consensus
Had not dealt with ongoing financial and economic pressures, poverty and social problems remained unsolved
Labour government strengths
Wilson’s affable image, impact of devaluation and deflation, liberal reform
Labour government weaknesses
Economic problems: sterling crises, devaluation, tax rises and public spending cuts
Failure to reform industrial relations
Concerns about the permissive society
Conservative opposition strengths and weaknesses
Promise to reform industrial relations, Heath seen as competent, but was unpopular
What are private members’ bills
Bills put forward by individual MPs rather than the government or opposition parties. When these are directed at moral issues, parties usually allow their MPs to decide how they want to vote. These bills are usually unsuccessful unless the government enables their progression as Jenkins did during his tenure as Home Secretary.
End of capital punishment
Influenced by the limits to the number of capital crimes introduced in 1957, the case of Ruth Ellis, and the campaigning work of Sydney Silverman
Initially abolished for a 5 year trial in 1965, the change was made permanent in 1969
Divorce reform
Influenced by second-wave feminism
Divorce Reform Act 1969- allowed ‘no fault’ divorce where a marriage had irretrievably broken down. A couple could divorce if they lived apart for 2 years and both consented, or lived apart for 5 years where one party did not consent.
Divorce rates rose from 2 in 1000 marriages in 1950 to 10 in 1000 by the mid-1970s
Abortion legalisation influences
Campaigning by David Steel
Demand for abortion- between 100,000 and 200,000 abortions were performed illegally each year
Impact of illegal backstreet abortions- around 35,000 abortions were admitted to hospital each year with complications following an abortion and between 1958 and 1960 82 women died as a result of these complications
Thalidomide disaster 1959-62 which increased the number of abnormal foetuses
Abortion legalisation
1967 Abortion Act legalised abortion within the first 28 weeks of pregnancy with the written consent of 2 doctors. The number of abortions went up from 4 per 100 live briths in 1967 to 17.6 in 1975
The legalisation of homosexuality
The Wolfenden committee, set up by the Conservative government had recommended the decriminalisation of homosexuality, campaigning by Leo Abse
Sexual Offences Act of 1967 decriminalised homosexuality if both partners were over 21, both partners had to consent and it had to be private
However, some prosecution of homosexual men continued
Reasons for educational reform
Grammar schools were dominated by the middle class, secondary school pupils were seen as failures from the age of 11 years old
Reasons for the introduction of comprehensive schools
Wilson argued that the comprehensive system ensured all pupils could have a grammar school education, rather than this being limited to a minority of pupils
Tony Crosland became Minister of Education in 1965
Crosland encouraged the introduction of more comprehensives in 1965 by issuing Circular 10/65 requesting that LEAs convert to comprehensive schools
In 1965 money for new school building became conditional on LEAs drawing up plans for comprehensive schools
The introduction of comprehensive schools
By 1964, 1 in 10 pupils were being educated in a comprehensive school, an increase of 10x since 1951
By 1970 all but 8 LEAs had drawn up plans to introduce comprehensive schools
By 1970 there were 1145 comprehensive schools and 1 in 3 of state-educated pupils went to a comprehensive school
Impact of the introduction of comprehensive schools
Initially there was a lot of disruption as schools were merged to create comprehensive schools
Some middle-class parents turned to direct grant schools or the independent sector to avoid comprehensive schools
The retention of grammar schools meant that not all comprehensive schools were truly comprehensive
The expansion of higher education
Colleges of Technology became polytechnics concentrating on applied education
Nine Colleges of Advanced Technology became universities
New universities were founded such as Bath and Bradford
By 1968 there were 56 universities and 30 polytechnics which opened up opportunities to new types of potential students- even though the more established universities continued to enjoy a higher status
The Open University
Increasing social mobility by creating opportunities for people who had previously been denied them and modernising Britain
Opened in 1969 and started running from 1971
Most students were part time and tended to come from less traditional backgrounds- older people, women, the working class
By 1980 the OU had 70,000 students and awarded more degrees each year than Oxford and Cambridge put together
The expansion of the mass media
Television- Hugh Green encouraged the development of new programming- more populism, satire and realistic drama. ITV started in 1952 and BBC2 in 1964. Percentage of population that had a television in their home increased from 75% in 1961 to 91% in 1971
Radio- teenagers listened to popular music firstly by pirate radio stations and then BBC Radio 1
Print media- The Sun was launched in 1964 and maintained a high readership by reflecting popular culture
How did leisure change during the 1960s?
Traditional activities such as gardening and cooking remained popular and TV programmes reflected these interests
TV meant that attendance at live entertainments fell, greater access to cars enabled people to travel more easily to activities
Britannia Airways was founded in 1964. Package holidays grew from 4% of holidays in 1966 to 8.4% in 1971 though this was still only for a minority.
Impact of scientific developments
Human space travel in 1961, moon landings in 1969, new technologies, e.g. cars, household appliances and radios becoming more affordable, new fabrics in fashion, contraceptive pill became available
Reduction in censorship
Due to a private members’ bill that had the support of Roy Jenkins
Ended theatrical censorship
Followed a number of disputes
Film censorship remained, films covered more daring themes such as adultery, abortion and illegitimacy
Progress towards female equality
Second-wave feminism
Working mothers still portrayed as unnatural
By 1970 28% of students were women, but this did not lead to greater employment opportunities- by 1970 only 5% of women reached managerial posts
Girls’ education still tended to be dominated by domestic skills
Key feminist texts- The Female Eunuch, The Feminine Mystique
Women’s liberation conference in 1970- demanded equal pay, free contraception, abortion on request, equal opportunities, free childcare
Women’s lives 1964-70
Labour-saving devices in the home freed women, but advertising still enforced role as a housewife
Increased education and access to higher education encouraged women to develop higher expectations, but slow and difficult progress along career paths was frustrating
Increased availability of jobs gave women greater independence, but women were still responsible for the home and children
Greater control over family planning, men could avoid responsibility
Easier divorce, but still a lack of economic independence
Permissiveness
Availability of contraception
Easier access to divorce
Decriminalisation of homosexuality
Number of illegitimate births rose from 5.8% to 8.2% between 1960 and 1970
Changed attitudes to sex exemplified by the hippy emphasis on free love
Rates of STDs rising
Decline in censorship and the rise in more daring and controversial themes in books, films, theatre and television
Greater visibility of drugs in pop culture, e.g. The Beatles
Use of cocaine rose by 10x
Wootton Report of 1968 recommended the decriminalisation of soft drugs
Non-permissiveness
Catholic Church opposed the use of contraceptives
Mary Whitehouse- National Viewers’ and Listeners’ Association in 1965 to campaign against declining moral standards in the media
Rejection of the Wootton Report by Callaghan
Sentence for supplying drugs was increased to 14 years in 1970
Surveys found most young people were either virgins on marriage or married their first and only sexual partner
Young people used alcohol and tobacco more than illegal drugs
Youth culture
Largely defined by fashion, London was seen as the fashion capital. Often caused clashes with the older generation. Women wore trousers and miniskirts and men wore bright patterns as traditional rules were abandoned.
Music- pirate radio, Radio 1, Top of the Pops
New youth subcultures- skinheads, hippies- rejected social conventions and promoted free love, environmentalism and peace
Anti-Vietnam War riots
1965- teach-ins on Vietnam held at Oxford University
1966- Vietnam Solidarity Campaign set up
March 1968- violence at a demonstration held outside the American Embassy, Battle of Grosvenor Square
October 1967- anti-war demonstration outside Grosvenor Square attracted 30,000 people
Attempts to stop racial discrimination
1964- Notting Hill Carnival
1965- Race Relations Act forbade discrimination in public place on the basis of colour or race through excluded housing and employment.
1968- Race Relations Act banned discrimination in housing, employment and services. Race Relations Board was strengthened.
Late 1960s- much youth culture drew on the music, fashion and philosophies of immigrant culture
Racial tension and concerns about discrimination
1965 survey in North London showed 1/5 didn’t want to work with Black or Asian people, 50% said they didn’t want to live next door to a Black person, 9/10 people disapproved of mixed marrriages
April 1968- Enoch Powell’s Rivers of Blood speech- gained public support
February 1968- Commonwealth Immigration Act- Asians in Kenya facing persecution began to arrive in Britain in greater numbers, the Act restricted the rights for non-white Commonwealth citizens
Wilson and the Vietnam War
USA wanted support and approval
Wilson wanted to keep the Atlantic Alliance intact And wanted the USA to remain committed to resisting the communist threat in Europe, especially in the light of the USSR’s invasion of Czechoslovakia in 1968
The USA was disappointed in Britain’s limited support
Wilson disappointed the Left who wanted him to condemn the war
Britain wasn’t in a good financial position to become involved in a war and there was much opposition to British involvement
Those who were against joining the EEC
Gaitskell- opposed application of the Conservative government in 1961
Those on the Left saw the EEC as a capitalist club, e.g. Michael Foot and Barbara Castle
Trade unions
Those who were in favour of joining the EEC
Senior members of cabinet such as Roy Jenkins and George Brown
Labour splits over Europe in the 1960s
Wilson was ambivalent- he favoured the special relationship over the EEC but he could see the potential economic benefits of joining. He also needed to unite the party.
By 1966 Wilson was persuaded by the economic case to apply, the Left wasn’t too critical as they believed the application would be rejected
The application was rejected in November 1967- De Gaulle vetoed Britain’s membership because Wilson did not give assurances that Britain was prepared to lessen the special relationship
Withdrawal East of Suez
Reducing Britain’s military commitments in the Commonwealth was necessary for economic reasons
Spending cuts aimed to bring the defence budget down below £2 billion by 1970
1967- the Minister for Defence, Denis Healey, set a timetable to withdraw troops from Aden, the Middle East, Malaysia and Singapore
This timetable was accelerated in January 1968 after the devaluation crisis so troops were to be withdrawn by the end of 1971
Rhodesia
The Federation of Rhodesia and Nyasaland broke up into Northern Rhodesia, Southern Rhodesia and Nyasaland in 1963- these new states wanted independence
Northern Rhodesia became the independent Zambia in 1964
Nyasaland became the independent Malawi in 1964
Southern Rhodesia wanted independence
Britain didn’t want to allow independence for Southern Rhodesia whilst it insisted on maintaining white minority rule
Key chronology of Rhodesia
PM Ian Smith issued a Unilateral Declaration of Independence without accepting majority rule- 1965
Wilson declared this to be illegal and put economic sanctions on Rhodesia- 1965
Wilson met Ian Smith on board HMS Tiger to discuss a negotiated settlement; progress was made but Smith went back on what was agreed- 1966
More talks were held on HMS Fearless but no progress was made- 1969
Consequences of Rhodesia
Wilson was unable to make Smith back down
Other Commonwealth countries were unhappy about the situation in Rhodesia and Britain’s failure to change it
Britain’s limited influence made it look weak
Failure to end white majority rule disappointed many on the Labour Left
Sanctions remained and Rhodesia’s independence was not officially recognised until 1979
Heath as leader
Experienced- Conservative leader since 1965
First Conservative leader to have been chosen through a formal election process
State school background
Won the 1970 election with a clear programme of reform, especially around industrial relations and economic modernisation
Was a Europhile- committed to Britain’s entry into the EEC
Heath’s weaknesses
Seen as aloof and irritable and wasn’t personally popular, either with the electorate or members of the party
Lost 1966 and 1974 elections
Premiership marred by industrial disputes and economic problems
Defeated in leadership election of 1975 by Margaret Thatcher, ongoing antipathy between them and their supporters
Selsdon Park Policy Programme
Tax reform
Improved law and order
Trade union control
Immigration control
Cuts to public spending
End of public subsidy to lame duck industries
Response to economic issues
Chancellor Barber introduced tax cuts to stimulate economic growth. ‘Barber boom’ saw rising inflation and rising unemployment to 1 million- stagflation.
Heath nationalised Rolls Royce in 1971 and in 1973 put public subsidy into the Upper Clyde Shipbuilders to stop it from going bankrupt
Continuing public subsidy to lame duck industries went against Selsdon Park but supported the PWC aim of full employment
Economic situation by 1973
Unemployment fell back to 500,000, investment into modernising industry seemed to be working