Heath Economy

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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.
        • 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
    • 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'
        • 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
      • 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
    • 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

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