Heath's government, 1970-74
- Created by: Emily_O
- Created on: 31-12-14 16:07
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- Heath government, 1970-74
- The new government and its problems
- Heath didn't have a 'kitchen cabinet' like Wilson did
- He did have trusted assistants but not like Wilson's
- Heath 'flapped around like an affronted penguin' (Roy Jenkins)
- He also had 'grumpy integrity' which Jenkins respected
- He appeared likely to do what he said he was going to do and for the reasons he said he was doing it
- He was firmly in charge of his Cabinet
- However the government came over as a one-man band
- Private Eye introduced a column 'Heathco - a message from the Managing Director'
- Heath had a very clear idea of what was and wasn't wanted
- Didn't want the Price and Incomes Board
- Wanted to slim down government and make it more efficient
- Wanted a new framework for industrial relations and Britain's entrance to the EEC
- Didn't want the Price and Incomes Board
- Heath didn't have a 'kitchen cabinet' like Wilson did
- Problems of Northern Ireland
- Roman Catholic civil rights movement developed in province of Ulster (only part of Ireland still under British Crown)
- System of apartheid operated and the two communities lived side by side but in mutual distrust and incomprehension
- Catholic protests began in 1967 and in 1968 produced a Protestant backlash
- Jim Callaghan (Home Secretary) sent units of the British Army in in August 1969 to protect the Catholices
- Initially the Catholics welcomed the troops but by 1970 there were Catholic attacks on British troops
- Jim Callaghan (Home Secretary) sent units of the British Army in in August 1969 to protect the Catholices
- The almost defunct Irish Republican Army (IRA) was revitalised
- Breakaway group, Provisional IRA, established in Londonderry and Belfast and began to wage a guerilla war
- The violence continued to grow throughout 1972
- Promising start, 1970-71
- Despite problems, for just over a year everything seemed to be going to plan
- Heath got French and parliamentary approval for Britain's entry into the EEC
- It left the Labour Party weakened and divided
- Popular tax-cutting Budget by Tony Barber in 1971 designed to stimulate the economy
- Standard rate of income tax cut by 2.5%
- A new framework for industrial relation was achieved in 1971
- Nationalisation
- The government had shown their intent to reduce the role of government but was then forced to nationalise bankruptcy-facing Rolls Royce
- The same happened in Scotland with Upper Clyde Shipbuilders
- The government had shown their intent to reduce the role of government but was then forced to nationalise bankruptcy-facing Rolls Royce
- The miners
- Soon clear that the Industrial Relations Act wasn't working as hoped
- New Industrial Relations Court had power to enforce ballots before a strike and a cooling-off period
- Could only act if unions registered under the Act which they didn't
- When it did act a national dock strike was threatened
- Showed that the government was unable to enforce its policy
- New Industrial Relations Court had power to enforce ballots before a strike and a cooling-off period
- Pay increases were running ahead of inflation and fueling further inflation
- Over past 15 years miners had accepted moderate pay settlements in return for job security and voluntary redundancies as uneconomic pits were closed
- Now they demanded a catch up
- In 1971 they gained 14% (inflation 7%)
- Now they demanded a catch up
- The government felt wage demands should be moderated
- Miners increasingly under influence of more extreme leaders
- Coal Board offer of 8% for 1972 rejected by the union and national strike by the miners began in January
- Tactic of 'flying pickets' widely adopted by NUM
- Small bands of strikers that can move quickly to any workplace associated with the strike
- Often intimidate not 'peacefully persuade' other workers to join in
- Small bands of strikers that can move quickly to any workplace associated with the strike
- Coal stocks at powers stations rapidly running down and power cuts occured
- Government decided to surrender, NUM got almost everything they asked for
- It was a 'public and disastrous defeat' for the government (Douglas Hurd)
- Government decided to surrender, NUM got almost everything they asked for
- Tactic of 'flying pickets' widely adopted by NUM
- Coal Board offer of 8% for 1972 rejected by the union and national strike by the miners began in January
- Miners increasingly under influence of more extreme leaders
- Over past 15 years miners had accepted moderate pay settlements in return for job security and voluntary redundancies as uneconomic pits were closed
- Growing economic problems of 1972 forced the government into a U-turn
- They were facing two problems, growing inflation and growing unemployment (1 million in 1972)
- The February 1972 miners victory encouraged other workers to press for bigger increases
- Heath saw the answer to be a return to a government prices and incomes policy
- Talks were held with the TUC and CBI in Autumn 1972 to see if a voluntary wage agreement was possible
- Unions and TUC broke off talks in November
- Heath introduced three-stage price and incomes policy
- Phase 1 was a six-month pay freeze
- Pay board introduced in 1973
- Phase 3 followed in Autumn 1973
- This was in direct contradiction to the very public dropping of an incomes policy in 1970
- In 1973 it looked like this might work but the outbreak of an Arab-Israeli War in October led to a reduction in oil supplies to the West
- Price of oil rocketed, British coal more important
- Miners' strike begins February 1974 and Heath decided to call a general election on the theme 'who governs Britain?'
- Avoided a union-bashing campaign
- Election resulted in hung parliament (no party had overall majority)
- Wilson called to the palace to become prime minister
- Miners' strike begins February 1974 and Heath decided to call a general election on the theme 'who governs Britain?'
- Price of oil rocketed, British coal more important
- Heath introduced three-stage price and incomes policy
- Unions and TUC broke off talks in November
- Talks were held with the TUC and CBI in Autumn 1972 to see if a voluntary wage agreement was possible
- Heath saw the answer to be a return to a government prices and incomes policy
- Soon clear that the Industrial Relations Act wasn't working as hoped
- The new government and its problems
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