Heath Economy
- Created by: ulas.akkus97
- Created on: 04-05-18 20:15
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- "Heath's domestic policies were a failure"
- Industrial Relations
- Industrial Relations Act of 1971
- Basically an imposition of 'In Place of Strife'
- Introduced by Robert Carr
- NIRC to judge validity of strikes
- 28-day cooling off periods
- Strike ballots
- Reactions
- TUC and CBI called on other unions to opposed the act, making it impossible to impose
- Major strikes in 1972
- 23,909,000 working days lost
- Highest since 1926
- Miners, ambulance services, firefighters, power workers.
- 23,909,000 working days lost
- Introduced to allow negotiations of wages to be fair
- Industry Act 1972
- Aimed to increase state assistance
- Involve the TUC and CBI in agreeing wages
- Trade Unions were way too hostile towards the gov to cooperate
- Foreshadowed the start of the U-Turn
- Many Conservatives were taken a back
- It was termed by some as the "Lame Ducks Bill"
- Miners Strike
- Led to the 3-day week
- War-time like measures
- Disputes were settled with a 21% increase in wages, 3x the original amount offered
- Following this success, they followed with another strike in January 74
- Whitelaw failed to deal with the strike
- Led to the 3-day week
- Industrial Relations Act of 1971
- Economy
- Aim: 'Selsdon Man'
- Pursuing radical monetarist and free market policies
- Seen as a clear break away from Keynesianism and the post-war consensus
- This policy was not actually intended to be a full break away from consensus
- Heath still believed in 'One Nation Toryism'
- This policy was not actually intended to be a full break away from consensus
- Tax & trade union reform
- Immigration controls, cuts to public spending and end of subsidies
- Barber Boom
- Economy briefly grew at 7.4%
- Later led to a rise in council housing rents due to tax concessions
- 15% inflation by the end of 1971
- 929,000 unemployed in 1972
- Highest since Great Depression
- U-Turn
- 18 months in, Heath succumbed to the pressure of the economic problems
- 1971: Rolls Royce nationalised
- 1971: Upper Clyde Shipbuilders subsidised £34m
- Returned to a policy of controlling prices and
- 18 months in, Heath succumbed to the pressure of the economic problems
- Yom Kippur War 1963
- Oil supplies reduced to the West by the OPEC to those who had been sympathetic towards Israel
- 1973-80: price of an oil barrel 2$ to 35$
- UK oil imports cut by 15%
- Interest Rates raised to 15%
- Annual Inflation at 16%
- £ fell to £1.57
- Aim: 'Selsdon Man'
- Ireland
- Internment 1971
- McVeigh "amongst the best recruitment tool the IRA ever had"
- 95% of those interned between 1971-75 Catholic
- Sunningdale Agreement 1973
- UUP voted to pull out of it in January 1974
- Ulster Workers' Council Strike
- Internment 1971
- Industrial Relations
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