Labour Loss 1970
- Created by: ulas.akkus97
- Created on: 05-05-18 19:24
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- "The Labour government lost power in 1970 because of its economic policies"
- Economic
- Devaluation
- $2.80 to $2.40 in 1967
- Situation overdramatised, devaluation could have been passed off as an economic adjustment
- 1965: £425m private sector surplus
- 1969: £1326m private sector surplus
- This shows that Wilson's critical accusations of TUs creating the deficit was wrong
- Inherited £666m public sector deficit
- 1969: £924m public sector deficit
- Inherited £666m public sector deficit
- Inherited £666m public sector deficit
- 1969: £924m public sector deficit
- 1965: £425m private sector surplus
- WAP Manser "if there were no gov. spending, there would be no deficit and no BoP problem"
- National Plan 1964: DEA
- Aimed to increase industrial production & exports
- Aimed to control wage-price inflation by voluntary agreements on wages
- Brown was not qualified for the job
- Directly in competition with Callaghan's treasury
- Tapped his phone
- Refused to sign papers
- DEA abandoned in 1967
- Prices & Incomes Board set up instead
- Had to approach IMF for a $3.9bn loan in 1967,
- Greatest sum the IMF had ever been asked for
- He had already reached out to them in 1964 with a £1bn loan
- Directly in competition with Callaghan's treasury
- Post-Devaluation
- Jenkins deflationary fiscal policy achieved a BoP surplus but decreased gov popularity
- Inflation still ran at 12% 1969-70
- Devaluation
- Industrial Relations
- In Place of Strife 1969
- Row over this went on for 4 months
- Seen as a humiliating event for gov
- Split the party
- Trade Union leader was supported by Callaghan: 50MPs ready to rebel
- Wilson imposed spending cuts and wage freeze after his election victory
- Cousins resigned over this
- Led to the Dockers' & Seamen's strikes
- In Place of Strife 1969
- Ireland
- Intervention in 1969
- Callaghan's decision in 1969 was initially welcomed by the Catholic communities, eg. Bogside, Londonderry
- The longer term critical impact of awakening the dormant IRA would not have been a crucial factor in the loss of power
- Intervention in 1969
- International
- Rhodesia
- Smith was a rigid persona
- Denounced everything he said in December 1966 after the meeting on HMS Tiger
- Wilson's diplomacy was seen as futile
- Great Power
- Decolonisation
- Did not sit well with those clinging on to world power status
- It had to be done due to the sheer cost of maintenance
- Healey bring defence budget below £2bn by 1970
- Accelerated under Jenkins' budget
- All troops to be withdrawn by 1971
- Accelerated under Jenkins' budget
- Nuclear
- 1967: Commitment made to upgrade nuclear system
- Abandoned under Jenkins' 68 budget
- TSR-2 high tech warplane abandoned
- 1967: Commitment made to upgrade nuclear system
- Decolonisation
- Europe
- Rejection of application in 1967
- Added to gov. inadequacy with devaluation
- US: Vietnam
- Public and parliamentary disapproval of Wilson's inability to condemn the war
- Rhodesia
- Economic
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