Edward Heath

HideShow resource information
  • Created by: Hannah
  • Created on: 14-04-13 21:17

Heaths personality

-Only person not suprised by victory

-stiff & prickly dealing with people

- 1970 economy stopped moving

1 of 12

Arab israel war 1973

outbreak of war lead to reduction  of oil and therefore cupplies to the west. Oil prices rocketed and demand for coal created. This put the miners in a good position due to the fact they could go on strike and get a wage increade. 

A confrontation with the miners was extremely feared and he wanted an unofficial deal with T.U.S however the 3 day week came into place

2 of 12

1970-1971 situation

-Aimed to over come inflation 

-suppress wage demands

-imcrease exports

by the end of 1970 economically stagnate

- '71 budget aimed to encourage demand

Tax reductions 550 million 

cut corperation tax 40% (profit of company taxed) 

increase tax allowence

reduce surtax for higher earners

3 of 12

71 ulster 'bloody sunday'

-Ulster waspart of the only british crown

-peaceful protests begun to highlight their independence

-british paratroops attacked & 13 killed, 14 injured. Britain did not have a trial for irish & therefore had no court case

IRA was able to use this as properganda and ireland against Heath

in2005 it became known that paratrooper of britain were the first to shoot 

4 of 12

problems in 1972

Inflation- retail prices rose by 8.6% between 70-73

rising unemployment 579,000 in 1970 to 899,000 in 1972

Deteriorating balance of payments in 1972- exports didnt rise - imports rose 11%

sterling crisis- devaluation of the pound 

5 of 12

Responses to the problems in 72

Economic U-turn- growing unemplyment and growing inflation reached over 1 million. cuts in taxation and low interests however this increased borrowing and house prices.  

6 of 12

Miners Victory '72

Encouraged to strive for more better things (miners) heaths answer to prevent this was to discplin the workface. In 72' he had talks with TUC to see if a wage could be negotiated. TUC left the talks in november as already annoyed with relations act 

3 things introduced by Heath

1) 6 month pay freeze

2) pay board

3) flat rate increases

Policy looked like it may work until israel war broke out. 

7 of 12

EEC 1973

Heath managed to get uk in EEC, which had failed 2 times perviously. The EEC held economic intergration and had 6 members. France, belgium, italy, luxenburg, netherlands, westn Germany. 

8 of 12

advantages of the EEC

Increase relations between countries, a form of a treaty, heath was successful on 3rd attempt which reflected well on him, free trade between country, access to european markets, regions of britain entitled to loans, workers entitled to work in EEC countries. 

9 of 12

Negatives of EEC 1973

No longer able to buy cheap food in the commonwealth

inflated food prices, GB= more advanced economy rherefore had to pay more money, than recieved in grants. E.G. 1980's 20% paid and recieving 8%.

common fisheries policy restricted GB'S access to sea.

By the time britain had joined already looking outdated,  

10 of 12

Arab israel war 1973

outbreak of war lead to reduction  of oil and therefore cupplies to the west. Oil prices rocketed and demand for coal created. This put the miners in a good position due to the fact they could go on strike and get a wage increade. 

A confrontation with the miners was extremely feared and he wanted an unofficial deal with T.U.S however the 3 day week came into place

11 of 12

3 day week

work for 3 days- 40% of productivity cut but produced only a 5 % fall. highlghting the economic mess britain was in. 

12 of 12

Comments

No comments have yet been made

Similar History resources:

See all History resources »See all Modern Britain - 19th century onwards resources »