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Polititcs 1970-79 (Wilson and Callaghan) x (Economic reforms 1974-76…
Polititcs 1970-79 (Wilson and Callaghan) x
Industrial relations 1974-76
Wanted to demonstrate the Labour party was better at dealing with trade unions than the conservatives
1973 while in opposition he had negotiated the social contract - voluntary pay restraints by trade unions in return for repealing Heaths Industrial Act
Agreement quick with the NUM allowing an end to the state of emergency and the 3 day week
Department of Industry and Employment , left-wingers in charge =Tony Benn and Micheal Foot
Dennis Healy put 2 budgets in place , march and july aiming to deal with the economic crisis without annoying the unions
Economic reforms 1974-76
Surge of inflation due to rush of large wage increase
1975 Dennis Healy made a speech in Leeds warning aginst wage inflation causeing unemployment and haing to control public spending
April 1975 Healey's budget meant steep rise in taxation and public spending was cut
National enterprise Boad 1974 set up under Tony Bennadminister the gov shareholdings in private companies and give financial aid- increase investment
1975 NEB usefulness being questioned with the go decision to Nationalise the failing Car manifacturer British Leyland - controversy Lame-duck
Social contract did not limit wage demands by 1975 more restaraints were put in plae and intensified division with left wingers Benn and Foot not wanting to pressure the union or have state intervention in industry
March 1976 Wilson suddenly resigned
Callaghan's premiership 1976-79
Safe Pair of Hands,Good links with the Union and good for party unity
Maintianed unity but growing militant left wing
1976poor balance of payment put pressure on the sterling and didnt have reserves of currency to support it
1976 Callaghan speech about the 'cosy world' where the gov could ensure full employment was gone productiity needed to improve to avoid the twin evils unemployment and inflation
Gov of the previous 20 yrs had failed to do this
Planning to apply for an emergency loan form the International Monetry Fund as there might be a run on the pound
December Healy recieed a loan of 3 billion adn in return the gov had to make big spending cuts
Callaghan handeled the IMF crisis well ad economy recovered but it reinforced a weak image
conservatives calle dit national humiliation
Labour party left wingsaw it a sa betrayal caving to international finacers
Economy did impore as the North Sea oil came on stream and by 1978 9 oilfields in production
Inflation rates fell to 10%
unemployment at 1.6 million was high but started to fall
number of working days lost was at a 10 yr low
The Winter of Discontent
Autumn 1978 TUC rejected the gov proposal of 5% wage increase limit- encouraged others to put in higher demands
Ford Lorry drivers achieved 15% increase after 9 week strike , more followed
Great disrupption of transport with the ASLEF strik ( lorry drivers and trians)
Public sector saw porters strike with clerical staff dustmen and gravediggers
Industrial unrest 1978-1979 but not as big as miners strike in 1974
March 1979 ended with avrg pay increase 10% but had bad psychologial effects
Problems in Northern ireland
UUp, SDLP and the allience ( both loyalists and republicans) opposed the Sunningdale agreement
UUP turned against the Sunningdale agreement
Set up by Shipyard worker Harry Murray determined to bring down the executive
Strike in 1974 wich limited telecommunications and made the British declare a state of emergency
Within a fortnight Faulkner resignedas Chief executive of the power-sharing gov- Wilson was forced to direct rule - the agreemtn had collapsed
Wilson announced the Northern Irish constitution Covention an elected body to govern the furute in NI
Elections 1975 gae a maj to unionists opposed any power sharing and nationalists couldnt work with them so there was no power sharing
Dissoled in 1976
1976 Special catagory Status removed from terrorist prisoners so they were no longer considered political but criminal
Disliked by Paramilitaries who belied we were in a war
As criminals they had to wear a prision uniform and the refusal of this lead to the 'blanket protest' with IRA and INLA naked or only wearing blankets
Dirty protest 1978
Republican prisoners alleging ill treatment and refused to leae their cells so could not empty out slop
Smeared excrament on the walls
The general Election 1979
Callaghan waited for an election till 1979
Political landscape had been shaped
Winter of discontent
deterioration of the economy
Trade Unions bad reputation
Many workers began voting for conservative
March 1979 gov lost the vote of no confidence on Scottish devolutionand was foced to resign for the first time since 1924
conservatives talked about the issues of unemployment, law and orderand the unions
Images of Winter of disconent were in the media with the Times ect supporting hte conservaties
Strikes of 1979 showed weakness of old Union leaders compaired to new militancy
Labour vote held quite well with only a 3 % dip but conservatives benefitteed from Liberals lost votes and achieves a majority of 43
Context
Wilson was in a much less pormising position that 1964
Inflation 15%
Blanace of payment deficit 3 Billion
Labour party less united than ever
Wilson older and less energetic
Minority governemnt had to rely on other parties for support
October 1974 new election
Conseratives still assosiated with Heath and the 3 day week and miners conflict
Wilson only just won his majority of only 3
Devolution
1977 Labour majority had disappeared and a 'Lib-Lab pact' to defeat the vote of no confidence tabled by the tories
12 Liberal MPs vote with Labour in return for the devolution of Wales and Scotland ( trnsfer ofpowers to lower leels of government)
Nationalists in Scotland and Wales had been growing in strength since the late 1960's and the OCnserative PArty and many within Labour had been against it
After lengthy debates in 1978 the devolution Acts for Scotland and Wales were passed opening the way for a reffurendum
terms set to make it unlikely that devolution waould pass as a Labour MP inserted a clause of 40% to approve
Held 1st March 1979 and was against this was dissapointing for Scottish MPs and they withdrew support form the Labour PArty