The End of Consensus - Economy (Modern Britain AQA complete notes 6/16)

These notes are for the 'Making of Modern Britain' course on AQA and as such follow the spec, although would be useful for all modern britian courses. They contain hystoriography, detail and explanations. 

The notes are devided into the sections of the spec, therefore there are 16 documents (as there are 4 areas (politics, economics, society, and foriegn policy) and there are 4 periods (Post war, Wilson + heath, Thatcher, and Blair)). 

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Page 1

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The
End
of
Consensus
­
Economy


The
impact
on
the
economy
of
government
interventions,
1964-1973;
the
oil-price

crisis
of
1973
and
the
end
of
the
long'
post-war
boom'

Harold
Wilson
1964-70

Issues
to
confront
(causes
of
economic
decline)


- Lack
of
investment

- Over-spending
in
defence

- Cost
of
two…

Page 2

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! Based
on
inaccurate
assumptions
about
the
state
of
the

economy.

- Established
Prices
and
Incomes
bill.

o Gave
the
government
power
to
require
wage,
price
or
dividend

increases
to
be
submitted
to
Prices
and
Incomes
Board.


Decrease
spending
Cuts

- Defence

o 1965
5.9%
of
GDP

o 1970
4.8%…

Page 3

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Crisis
and
Solution
(deflationary)

Crises
1964


- Speculators
in
Europe
attempted
to
make
money
by
selling
sterling,

lowering
its
value
and
then
buying
sterling.


- The
bank
of
England
was
forced
to
sell
dollars
so
that
it
could
buy
sterling

to
keep
its
value
high
so
that
the
speculators
would…

Page 4

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- £500
million
package

o Hire
purchase
repayments
tightened

o £50
a
year
per
person
overseas
travel

o 10%
increase
in
purchase
tax

! Wine

! Tobacco

o Legally
binding
wage
freeze
for
6
months

! 6
months
of
severe
restraint

o (Note:
deflationary
action
worked
against
national
plan.)

-…

Page 5

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o The
Arab-Israeli
War
(6-days)
had
pushed
up
the
cost
of
oil,
and

closed
Suez

! Increased
the
balance
of
payments
deficit.


! Claimed
to
be
not
very
significant
by
Sked
and
cook.

o Serious
dock
strikes
in
London,
Liverpool
and
Merseyside.

o October
1967
had
seen
worst
monthly
trade…

Page 6

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· Alcohol

· Tobacco

o Unemployment
Increase

! Regional
divides

· Scotland
and
Wales
saw
more
of
it.



Roy
Jenkins
-
Chancellor
of
the
Exchequer
(Nov
1967
­
1970
Election)



IMF
conditions

- Said
IMF
had
created
no
conditions

- This
was
false,
and
was
shown
to
be
the
next…

Page 7

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Action
1968

- Petrol
and
alcohol
taxes
up
again.

- Purchase
tax
was
increased

- Import
deposit
scheme
in
place.

- 1986
March
Operation
Brutus

o The
plan
to
Lockdown
Capital.

! Never
implemented.

! Showed
how
fearful
of
crisis
they
were.

February
1969

- Bank
rate
at
8%

-…

Page 8

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Historiography



- R.K.
Webb

o `[The
selective
employment
tax,
higher
on
service
sector]

alienate[d]
the
business
community
further
and
to
damaged
the

governments
reputation
with
consumers
as
the
public
was
made

aware
of
how
the
tax
pushed
up
prices.'

- W.
D
Rubenstein


o `Roy
Jenkins
proved
to
be
a…

Page 9

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o 1972
February
£35
million
in
aid
from
government.

! Glasgow
Chief
Constable
worried
about
unemployment
and

crime
in
the
areas,
as
unemployment
already
1
million.

o 1972
March
Ministry
for
Industrial
development
created
with

£315
million
budget
for
aiding
ailing
regions,
through
industrial

investment.

! An
action
cheered
by…

Page 10

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Anthony
Barber
­
Chancellor
of
the
Exchequer


1971
April
Budget


- Tax
cuts
of
£550
million

o Cut
in
cooperation
tax
by
40%

o Half
selective
employment
tax

o Reduction
in
surtax

- Welfare

o Increase
in
tax
allowances
for
children


o Family
income
supplement
(FIS)
would
be
given
to…

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