BRITISH set four

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LABOUR GOVERNMENT - 1974-1979

The february 1974 election - hung parliament. Heath failed to form a gov so Wilson returned as PM leading a minority gov. - wilson was forced to call a new election in oct 1974 which resulted in a labour majority of 3 seats.

Wilson was PM until he resigned in 1976 and was replaced by James Callaghan.

ECONOMIC POLICY:

  • end miners strike
  • reduce unemployment
  • reduce inflation

UNIONS AND PAY POLICY:

Labour re-appealed the industrial relations act & proposed for greater co-operation with trade union movement. 

- by june 1975 wage inflation had grown to 33%. Wilson introduced a compulsory incomes policy in june 1975. - pay freeze for anyone who earned over £6000 - frustrated unions. Pay was never allowed to rise more than 10% a year

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LABOUR GOVERNMENT - 1974-1979

MONETARISM:

Denis Healey (lab chancellor) broke consensus  by embracing monetarism. He argued it was no longer the gov's policy to spend money to promote employment. Instead the gov needed to control inflation by cutting gov spending.

IMF CRISIS:

1976 - The pound was worth little over $2 - by sept it was worth only $1.63. The gov borrowed £3900 mill from the internation monetary fund to support the value of the pount. The gov had to agree to cut £3000 mill from public spending to get loan.

THE WINTER OF DISCONTENT:

 August 1978, Callaghan introduced his new incomes policy, restricting pay rise to 5% a year = angered the public and unions. Unions like COSHE and NUPE went on strike for 6 weeks - this affected rubbish collection, sewage treatment&burial of the dead. A pay deal of 9% was agreed and the strike was called off.

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LABOUR GOVERNMENT - 1974-1979

LABOURS ECONOMIC RECORD:

SUCESSES - INFLATION FELL FROM 16% IN 1974 TO 8% IN 1979.

- BALANCE OF PAYMENT DEFICIT OF 3.6 BILL IN 1974 TO 0.8 BILL SURPLUS IN 1978.

FAILURES - UNEMPLOYMENT ROSE TO OVER A MILL IN 1979.

HEALTHS SOCIAL POLICY 1970 -1974

EDUCATION - MARGARET THATCHER ( MINISTER FOR EDUCATION AND SCIENCE)

- She introduced the 1971 milk act - ended the provision for free milk.

- In 1973 she raised the school leaving age from 15 to 16.

- She announced a 40% increase in the budget for building new polytechnic schools.

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social policy 1970-1979

HEALTH CARE

- sir keith joseph ( mins for health ) introduced a majaor NHS reform in 1973. The NHS reorganisation act was designed o save the gov money by restructuring the NHS. 

- The act set up local auhorites to manage health care in counties.

- spending on the NHS increased on the short term. critics say that this act led to the beauracratisation of the NHS. 

LABOUR SOCIAL POLICY 1974-1979 - EDUCATION

1974 labour manifesto - expand nursery education and end selection in secondary schools. wilson said no leg to force authorities to introduce comprehensive education. 

callaghan - 1976 education act target authorities that still used the selective system. callaghn 'ruskin spech' attacked underpeforming teachers and called for higher standards in schools.

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social policy 1970-1979 / Wilson & Callaghan

LABOURS SOCIAL POLICY 1974-1979 - HEATH CARE

  • 1974 - Lab manifesto promised increased spending on the NHS. 1974-1976 saw an ncrease of spending by 5% - largest ever increase.
  • Josephs NHS reorganisation Act - 300% increase on admin between 1968-1979. 
  • Resources working allocaton party - new way of distrubuting resources across the NHS, meant more money went to working class areas.

wilson was committed to maintaining consensu policies. 

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