Wilson 1974 - 1976
- Created by: yazmintaylorx
- Created on: 04-01-18 14:35
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- Wilson 1974 - 1976
- Industrial Issues
- 1973 Wilson negotiated the Social Contract with the TUC
- TUs were sent a clear message that the govt. was not looking for confrontation
- agreement quickly reached with NUM allowing W to end the state of emergency & 3 day week
- 2 left-wingers, Tony Benn & Michael Foot, were put in charge in depts of industry & employment
- smart move - connected with the people
- W's new chancellor, Healey, issued 2 budgets in March & July
- both aimed to deal with economic crisis & avoided annoying the TUs
- Economic Reforms
- surge in inflation due to the rush of large wage increases needed to get out of the industrial crisis that brought down Heath
- Jan 1975, Healey gave a speech giving a stern warning of dangers
- wages increases caused unemployment
- vital to control public spending
- April 1975, Healey's budget imposed steep rises in taxation & public spending was cut
- National Enterprise Board was set up in 1974 under Tony Benn to administer the govt.'s share holdings in private companies
- it could also give financial aid
- NEB aim to increase investment, by 1975, its effectiveness was questionable
- govt.'s decision to nationalise British Leyland caused controversy about the role of the govt. in rescuing 'lame-duck' industries
- became apparent the Social Contract was not limiting wage demands
- by 1975 a more formal pay restraint policy was introduced
- shifts in policy intensified party divisions
- by 1975 a more formal pay restraint policy was introduced
- left-wingers like Foot & Benn didn't want to put pressure on TUs & believe in more state intervention in industry
- Wilson's Last Period in Office
- 16th March 1976
- Wilson made a surprise announcement of his resignation
- claimed he always planned to retire at 60
- 16th March 1976
- Industrial Issues
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