Conservative Prime Minister. Was in power 1951-1955. Resigned in April 1955 and Anthony Eden took over. End of rationing, end of austeriry, start of post-war boom. Denationalisation of the steel industry. End of the Korean War in 1953.
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RA Butler/Butskellism
Butler was a key figure as Churchill's Chancellor, he almost overshadowed Churchill and he was known as 'the best Prime Minister there never was'. He was a big influence in the development of modern Conservatism
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Keynesian Economics
Maintaining full employment. Achieving economic growth. Expanding the welfare state. Keeping to Britain’s heavily committed military defence programme. Developing a nuclear weapons programme.
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AGE OF AFFLUENCE
From 1952 most economic indicators showed improvement, Home-ownership was on the rise. Men's weekly wages were going up. There was a boom in car ownership. The most obvious factor that indicated the end of austerity was the surge in consumerism
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EDEN'S GOVERNMENT
Conservative Prime Minister. Was in power 1955-1957. The Suez crisis was Eden's undoing and he resigned in 1957 from ill health.
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1955 ELECTION
Eden called election as soon as he came into power in May, press overwhelmingly supported Conservatives, a majority of 70 seats, 49.7% of the vote and 344 seats overall. Labour won 46.4% of the vote + 277 seats. Liberals won 2.7% of vote + 6 seats
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SUEZ CRISIS 1956
In July 1956 Colonel Nasser announced his plans to nationalise the Suez Canal. Eden didn't like this because it posed a threat to British supplies that came through the canal. America and France joined Britain in their attempts to apply pressure.
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SUEZ PART 2
On October 31st they invaded Egypt to try to gain control of the canal but pretending that they were encouraging a ceasefire. America was furious that they had been ignored and condemned Britain, France and Israel.
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CONSEQUENCES OF SUEZ
It was not a military loss. It was a landmark moment because Britain had tried to act independently of the US and NATO, had failed and would never try again. The pressure from the US to end the Suez mission revealed Britain's financial weakness
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1959 ELECTION
Believed that Labour had chance of winning election, first election since the Suez crisis. Feeling stop go would work against them. Labour mistake of declaring they wouldn't raise taxes, despite manifesto pledges to increase spending, voters doubted
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1950s ECONOMY
Mixed economy, loose form of Keynesian economics, stop go, wanted to encourage more spending and move into a demand-led recovery, 1959 tax cuts to boost support in election, led to increased consumer spending and higher inflation.
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1950s ECONOMIC POLICY
This continued until 1963 when, in an attempt to win popularity before the election, there was a move back to expansionist budgetary policy. Another boom in consumer spending followed and imports had to be increased to support it.
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1950s ECONOMIC POLICY
The result was a balance of payments deficit over £800 million by the end of 1964. Stop-go and stagflation were prominent during this time. Britain's government seemed to lack a genuine economic strategy.
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1950s ECONOMIC POLICY
The government had the lowest GDP growth rate in Western Europe. Spent 10% of Britain's GDP on defence, with only the USA spending more, and did not invest enough in industry.
Butler was a key figure as Churchill's Chancellor, he almost overshadowed Churchill and he was known as 'the best Prime Minister there never was'. He was a big influence in the development of modern Conservatism
Back
RA Butler/Butskellism
Card 3
Front
Maintaining full employment. Achieving economic growth. Expanding the welfare state. Keeping to Britain’s heavily committed military defence programme. Developing a nuclear weapons programme.
Back
Card 4
Front
From 1952 most economic indicators showed improvement, Home-ownership was on the rise. Men's weekly wages were going up. There was a boom in car ownership. The most obvious factor that indicated the end of austerity was the surge in consumerism
Back
Card 5
Front
Conservative Prime Minister. Was in power 1955-1957. The Suez crisis was Eden's undoing and he resigned in 1957 from ill health.
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