The affluent society: Economic developments 1951-64
Post-war boom
Balance of payments / 'stop-go' policies
Other issues
Britain's economy on the world stage
Increasing population, by 1961 there was 2 million more people than in 1951.
The global economy was booming, increasing overseas trade.
Food rationing ended July 1954.
By 1955, less than 1% of the workforce was unemployed.
Increase in electrical and engineering work. Services and financial industries also grew.
'give-away' budget in the run up to the 1955 election provided the middle class with £134 million in tax cuts.
Growth of affluence, consumerism and living standers.
It was difficult to persuade trade unions that their workers should not have high wage increases.
The government attempted to control inflation by stopping growth with wage freezes and interest rates when the economy was in danger.
Growth in wages was outstripping the rate of production, causing inflation
This led to a trade deficit which created issues with the balance of payments.
The 1963, Breeching Report recommended massive cuts Britain's rail network, including the closure of more than 30% of the rial network, provoking public outrage.
In 1961, the government had to introduce a 'pay pause' to hold down wage inflation.
The 1956 Suez crisis exposed Britain's financial weakness and started a run on the pound. But by 1959 the value of the £ recovered.
The 1961 EEC application was a symbol of the government's failure to modernise the British economy.
In 1961, the government asked for a loan from the IMF (international monetary fund).
Economic growth, especially in West Germany was leaving Britain behind.
Exports rose just over 10% between 1961 and 1964 and imports remained nearly 20% higher.