Wilson 74-76

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  • Wilson (2) 74-76
    • 74 Election
      • Key feature of election was more representation of other parties
        • Liberals now had 14 seats - Heath tried to make a deal but failed
          • 4 March 1974 - Heath back in power
      • Called 2nd election in Oct 74
        • SEATS: L 319 C 277
        • ONLY AFTER dealing with the crisis left by Heath
          • Industrial Relations Act abolished - govt. did not want union confrontation
          • Chancellor Denis Healey issued budgets in March + July to deal with economic crisis
    • Period of Self Preservation
      • avoidance of disasters
      • No desire for innovation and modernisation like in 64
    • Obsession with domestic policies and party unity
      • EEC referendum in 75
        • Wilson against entry in 1972
        • attempt to please Lab MPs who disliked EEC
        • support in 75 by Britain staying in the EEC - press strongly in favour and 'yes' campaign was financed by business supporters
          • Economic mess country appeared to be in showed the need for Britain being in EEC
        • POLITICIANS 'YES': Roy Jenkins, Edward Heath
        • POLITICIANS 'NO': Michael Foot, Enoch Powell
        • 17 million voted 'yes' in July 1975 - membership confirmed
    • Later weak positions
      • surge in inflation due to wage increases that were deemed necessary to get out of industrial Heath crisis
        • inflation running at 20%
      • Healey = stern warning that wage inflation caused unemployment + it was vital to control public spending
        • April 75 - budget imposed steep rises in taxation
          • 76 budget - aimed to limit wage increases to 3%
            • intensified party div. - Lefts Foot + Benn did not want pressure on unions
      • Nationalised failing car manufacturer, British Layland
        • caused controversy about govt. saving "lame ducks"
    • Wilson resigned suddenly in March 76

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