Callaghan 1976 - 1979

?
View mindmap
  • Callaghan in Power 1976 - 1979
    • James Callaghan
      • became lesser, beating the left-wing Michael Foot
        • Callaghan was the most experienced
      • he had been chancellor 1964-1967 before the devaluation crisis
      • he had also been Home Secretary & Foreign Secretary
    • IMF Crisis 1976
      • in Sept 1976 Britain faced national bankruptcies as inflation ran almost out of control
      • this was partly due to the effects of the 1973 oil crisis but also by B's industrial decline & national debt
      • the govt. was forced to apply to the IMF for a £3.3bn loan to save B going bankrupt
      • this was humiliating as only 3rd world countries usually applied for IMF loans
      • the IMF would only grant the loan if the UK govt. agreed to make big cuts in spending on public services eg the NHS, pensions & schools
      • however, only half the loan was used and the govt. paid it back ahead of schedule
      • the value of the pound stabilised
      • inflation reached a record high of 24% in 1975, but was down to 8.3% in 1978
    • Devolution
      • Devolution Acts
        • acts for Scotland & Wales passed opening the way for a referendum
        • the terms of the referendum were set up in a way that devolution was unlikely to pass
        • 1st March 1979
          • Scotland turnout 62% Yes 51% & No 48.4%
          • Wales turnout 59% Yes 20.3% No &9.7%
        • the rules stating that a simple majority was not enough meant devolution was defeated
        • disappointed Scottish Nationalist MPs withdrew their support from Lab
      • 1977 C created the 'Lib-Lab Pact' to defeat a vote of no confidence
      • 12 Lib MPs agreed to vote with Lab & in return C promised to move ahead with devolution
      • majority of Cons & many Lab against devolution, but after lengthy debates 1978
    • The Winter of Discontent
      • autumn 1978 the TUC rejected Labs proposed wage increase limit of 5%
      • this encouraged TUs to put in higher demands
        • Ford lorry drivers received a 15% increase in December after a 9 week long strike
      • the wave of industrial action inc. disruption to transport with lorry drivers & train drivers from TU ASLEF
      • strikes by public sector workers eg hospital porters, clerical staff in local councils, dustmen & gravediggers caused outrage
      • the disputes were brought to an end March 1979
        • average wage increase received was 10% but the psychological effect had devastating impact on public mood

Comments

No comments have yet been made

Similar History resources:

See all History resources »See all Modern Britain - 19th century onwards resources »