Wilson Government 1964-70

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  • Wilson     1964-70
    • Majority of only 4 seats in 1964, increased majority to 96 in 1966.
      • Pressing foreign and colonial problems to deal with in 1964.
      • Economic situation = serious.
      • Showed that Wilson's leadership style had paid off.
        • Labour won because they managed to appear purposeful and resolute.
          • Promised to modernise society after "thirteen years of Tory misrule"
            • SOCIAL REFORMS
              • Changing attitudes.
              • Increase in prosperity, people travelled more and reduced class divisions.
              • More education and a higher standard of living.
              • Youth culture, civil rights movement in U.S, brought demands for equality.
              • Traditionalistsoutraged, 'permissive society' = CHANGING LAWS.
    • RACE RELATIONS
      • Immigrants from the C found low-paid jobs, PROBLEM for Labour party.
        • Immigration = unpopular, racial prejudice.
          • Fear that competition for jobs would result in lower wages.
          • 1965 & 68 Race Relations Acts, attempted to tackle discrimination.
            • BUT, enforcement methods were weak. Made it difficult to secure convictions.
    • EDUCATION POLICY
      • Existing system divided children on the basis of an 11+ exam.
        • 1965 ANTHONY CROSSLAND, Ed secretary = C Schols. Led to controversy.
          • Labour gov. maintained commitment of 63 Robbins Report.
    • VIETNAM WAR
      • Wilson believed GB's economic recovery and security depended on alliance with U.S.
        • "we have made absolutely plain our support of the American stand against the communist infiltration in SV"
          • Told the commons this after Johnson committed troops to fight in Vietnam.
            • BUT, refused Johnson's request to send British troops.
              • June 1966, publicly criticised heavy bombing of NV.
    • SOUTHERN RHODESIA
      • Labour left & countries of black Africa wanted Gov. to send troops to crush the rebellion.
        • Instead, Gov. used economic sanctions to try and end it. DIDN'T WORK.
          • Wilson tried PERSONAL DIPLOMACY. Proposed a settlement that would've left Smith in power.
            • Offer to Smith risked inflaming LW opinion in GB and the unity of the Labour Gov.
            • Wilson's tactics = risky. Problem not settled until 1980.
    • THE COMMON MARKET
      • Wilson believed he could persuade de Gaulle to change his mind = FAILED.
        • Did succeed in maintaining cabinet and party unity over Europe.
    • MANAGING OF THE LABOUR CABINET
      • Wilson showed considerable political skill in avoiding splits on foreign issues.
        • BARBARA CASTLE (Cabinet Minister)
          • "We spend three quarters of our time in these personal pro and anti-intrigues instead of getting down to the real jobs".
    • SUCCESS OF ECONOMIC POLICIES OF THIS GOV.?
      • Ministers aware in the 50's economic performance was lagging behind.
        • £800 million BoP deficit.
          • Could only be solved by producing goods that were better/cheaper than foreign products.
            • REQUIRED BRITISH FIRMS TO:
              • Improve efficiency by investing in new tech and machinery.
                • Gov. needed to maintain investment in nationalised industries.
                  • Ensure GB has a well trained workforce.
      • In times of inflation, union leaders used the threat of strikes to demand wage increases.
        • High labour costs made goods more expensive, contributed to BoP difficulties.
        • Party HAD TO take account of demands of unions.
          • Allied to unions, provided most of its money.
            • In the 60's,almost half of the British workforce belonged to a union.
    • THE ECONOMIC POLICIES OF THE WILSON GOV.
      • If it failed to tackle the BoP deficit, would gain a reputation for economic incompetence.
        • Would discourage foreign investment.
        • DEFLATION
          • Tax rises/cuts in Gov. expenditure.
            • Take money out of consumers' pockets and reduce the spending power of industries and businesses.
              • Reduced the import bill and decreased the gap between imports and exports.
      • DV 1967
        • Would make BRITISH products cheaper, boosting exports.
          • Could solve the BoP crisis BUT because GB relied on many imports = cost of living would rise.
    • 1964 CofE Callaghan negotiated foreign loans to prevent a run on the pound.
      • In return for U.S. financial assistance, had to agree to maintain British far Eastern bases.
        • Americans wanted continued British support in the region.
    • THE NATIONAL PLAN, SEPT. 1965
      • Wilson believed this could make British industry more competitive.
        • Created the DEA to devise a plan to modernise and improve GB's economy.
        • 2 TARGETS
          • Annual growth rate of 3.8% over 6 years.
          • Increase exports by 5.25% each year to wipe out the BoP deficit.
      • DID contribute to the Labour victory in March 1966 election.
        • Suggested the Gov. had a coherent vision for the future.
          • "You know the Labour government works"
    • DV IN 1967.
      • No other way out of its economic difficulties.
        • Seamen strike in 66' damaged exports, poor trade figures threatened another run on the pound.
          • SUCCESS?
            • Didn't prevent cuts in spending.
            • March 68', Jenkins delivered another hefty dose of deflation, increased taxation by $923 million.
              • During 1969 there were signs of improvement.
    • ECONOMIC RECORD OF THE LABOUR GOV.
      • Rate of inflation hadn't been slowed, U higher in 1970 than in 64.
        • By short term focus on the BoP and value of the sterling..
          • The Labour Gov. was no more successful than the Tories had been in tackling the underlying weakness of the British economy.
      • LACK OF INVESTMENT
        • Encouraged the development of manufacturing sites in the SW.
          • BUT sustained improvement in industrial productivity was undermined by the Gov.s deflationary policies.
    • IN PLACE OF STRIFE
      • By 68, Wilson was worried by press criticism of his failure to tame the unions.
        • In April, he asked BC to lead the Mo Employment and Productivity and reform IR.
        • Employees would have a legal right to join a trade union
          • There would be financial penalties if the commission wasn't obeyed.
      • TUC and LW MP's incensed by it.
        • Failure of it contributed to the fall of the Gov. in 1970.
    • WHY THE LABOUR PARTY LOST IN 1970
      • Too many supporters didn't bother to vote.
        • Membership of the party fell from 830,000 in 64 to 680,000 in 1970.
        • Too much money spent on defence and not enough on welfare, education and economic regeneration.
          • The WC had been made poorer by the Gov's policies.

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