Beruflich Dokumente
Kultur Dokumente
Macmillans claim that Britain never had it so good was dented due to employment reaching over 800,000 in 1963
Conservatives humiliating failure to join the EEC shown Britain to be weak internationally
Scandals tainting the conservative party 1963-4 weakened its claim to integrity and competence
Labours victory
Conservatives didnt have a modern image that appealed to everyone whereas labour was in tune with the changing times and Wilson was better with public image And competence
There were series of strikes over pay in 1966-67; the worst was lengthy stoppages by seas and Dockers unions.
Devaluation 1967
He believed industrial troubles were a key factor in the increase in Britains trade deficit The deficit had grown so considerably that in 1967, he felt that he had to approach the IMF for another large loan He blamed the trade unions, claiming that the government had begun to surmount the financial problems but was disrupted by the 7 weeks seamens strike The IMF loan was a stopgap (temporary way to deal with problems), which was a worrying sign that the government was losing control over its own finances In late 1967, he devaluated the pound but assured viewers that the pound in their pockets wasnt worth any less By delaying the measure and turning it into a drama, he made devaluation appear as a greater political and economic failure by the government Wilson was convinced at the time that Britains sluggish industrial performance was caused in large part by poor industrial relations
Immigration controls
The Vietnam War To try and restrict the spread of communism in Asia, the USA joined the struggle in IndoChina. Britain didnt become directly involved but labour and conservative patty consistently gave their diplomatic backing to the USA
The end of Britains east of Suez role 1967-71 The government decided to end Britains east of Suez stance In 1967, the defence minister announced plans for the withdrawal of British troops from their bases in Borneo, Malaya, Singapore and the Persian Gulf The usa disapproved and argued that the cold war tensions required a greater not lesser commitment to the defence of the worlds strategic area However o Couldnt afford to maintain expensive bases, with financial and economic difficulties at home o Military resources had been stretched due to exhausting military engagements o Gave up its former colonies and the abandonment if the vestiges of the empire made it logical for Britain to withdraw from its military bases
The 1970 election Despite internal party unrest and the loss of a number of seats in byelections, Wilson believed their support remained solid He had not realised that his undistinguished economic policies and failure to control the unions had lost his government a significant degree of support There was also the case of devaluation
Heaths U-Turn o Inflation had risen to 15% by the end of 1971 and declining industrial output destroyed the governments confidence that they could continue their original policy o It had abandoned the notion of government non-interference in industrial matters. The department of trade and industry began to help out lame ducks. subsidies were granted to other private companies in difficulties. Problems with the unions Heath wanted to solve common problems. But the unions were suspicious and hostile. As soon as the Industrial Relations Act had been passed, the TUC had resisted by formally voting against it. None of the unions registered, making it impossible to enforce the act, showing Heath and his cabinet as incompetent. The national union of miners called a strike during it which it effectively used flying
Pickets, groups of members ready to rush to area of strikes to add more weight, to bring the movement of coal to a standstill, disputing fuel and electricity supplies and reducing industrial production. The three day week: 1973 o Heath hoped to defeat the miners by imposing severe limits on the use of fuel, enabling the government to resist NUMs attempted blackmail o Heath believed that government would be able to survive the strike to a greater extent and said that most industrial and commercial premises will be limited in the use of electricity to three specified days a week. o When the dispute was finally settled, miners gained 21% wage increase and then went on strike again for further wage demand in 1974. Heath called a vote on who ran the country: government or the miners. The answer was not what he had expected. Local government reforms 1972-3 It attempted to reshape the structure of local government and the measures destroyed many historical administrative landmarks. Whole areas were subsumed with newly created regions and many place names disappeared. Right-wing conservatives protested because the reforms attacked on local identity. Britains Entry into Europe 1973 Following De Gaulles retirement in 1969, the EEC invited Britain to reapply In 1972, it signed the treaty of accession and became a member Edward heath probably regarded this as his greatest achievement He tried to give the impression that Britain was negotiating from strength and would strike a hard bargain but heath actually told his team to accept any terms. In 1972, economic difficulties made Britain weak. The Six knew that Britain had requested membership because it could not survive on its own. Heath had hoped that by joining Europe the government get back some economic ground but the entry coincided with an international crisis, as Britain and Europe were dangerously susceptible to events in the outside world
Advantages Gained access to European markets As part of a European block, it stood a better chance of attracting foreign business
Disadvantages Britain could no longer buy food from the commonwealth At the time of entry, Britain was believed to be an advanced industrial economy; it therefore had to make higher contributions to the EEC budget than it received in grants. Became victims of CAPs food policy, and brutish consumers paid inflated prices: in 1980 was an average of 1000 per family per annum The Common Fisheries Policy restricted Britains right to fish in customary grounds and led to the virtual destruction of Britains fishing industry Britain had to impose VAT on most commodities which British consumers bought.
The International oil price rise 1973 Until early 70s large multinational companies had controlled production and distribution of oil and supplied the western world with relatively cheap fuel From early 60s, OPEC (represented all leading oil-producing nations, including Arab states) members established greater control over their own oil industries. They gained strength as in 1973, its Arab members used oil as a weapon in their longrunning conflict with Israel The west supported Israel and the Arabs therefore reduced their oil supplies and at the same time, OPEC raised their oil prices from $2 to $35 a barrel The results were rapid and severe inflation occurred throughout the world- Britain suffered a recession.
Economic effects
Balance of payments deficits rose to 1 billion Annual inflation rate rose to 16% Value of sterling dropped to $1.57 Interest raised to 15% Between 1974-76, the unemployment figures more than doubled to 1.44 million
The February 1974 election There was a sense of hopelessness and disappointment and the labour party had a narrow victory. The conservatives gained a higher aggregate vote but the labour party gained more seats.
The wage demands on the unions and large numbers of days lost in strikes resulted in decline instead of growth in productivity
Disadvantages Couldnt buy cheap food from commonwealth Britain was classified as advanced industrial economy so it had to make higher contributions than it received in grants. The Common Fisheries Policy restricted Britains right to fish in its customary grounds and destroyed UKs fishing industry Had to impose VAT, began at 8% but doubled to 17.5%
Advantages Gained access to European markets British regions were entitled to European development grants British workers had to right to work in other EEC countries
Inflation
Due to oil price rise of 1973. There was a decline in the value for money and growing debit in the trade balance, which threatened to make Britain bankrupt The IMF crisis Chancellor of Exchequer began negotiating a loan of 3 billion from the IMF, terms included that Britain had to make major cuts in its public expenditure- the unions threatened to make trouble Healey (CofE) was jeered by delegates and the fued between the left and centre-right of the labour party was worse than ever It had happened by 1979 and helped to stabilise the financial situation, but unemployment reached 1.6 million in 1978
o o o
Unions
The cuts in public expenditure and rise in unemployment annoyed the trade unions The previous credit the government had earned from the Industrial Relations Act 1974 was lost as the workers did not co-operate consistently with it
1975 referendum
General vote by the electorate on a single political question which has been referred to them for a direct decision In order to improve relations with the unions, Wilson wanted to renegotiate Britains membership with the EEC People were upset and argued that the referendum should have preceded Britains entry. Also, the yes campgain was funded by the EEC and therefore was able to spend more on promoting it.
Wilsons retirement
Many believe he left early as he didnt want to deal with the economic problems. There were also rumours that he was threatened with blackmail by the soviet secret service over an affair he was having with his secretary.
Callaghan
o Strikes almost every month of when he was in office
o o
The unions became more aggressive, as Callaghan angered them by announcing a 5% ceiling on wage rises Foreign journalists coined the term british disease to describe the bad employer-worker relations and constant industrial stoppages
A year long strike in 1977 at the Grunwick photographic works in N.London involved mas picketing and violent clashes with the police
Industrial actions
A lorry drivers strike in 1979 threatened the nations food supplies. Drivers gained 20% wage rise
The workers at all 23 plants of Ford motors went on strike in 1970. Dispute was only settled by ford management giving a 17% pay rise
Problems