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1970-79: Labour governments of Wilson + Callaghan - Coggle Diagram
1970-79: Labour governments of Wilson + Callaghan
Winter of discontent
Ford Lorry drivers achieved a 15% increased in December after a 9 week strike - encouraging more unions to strike.
This was not as serious or large scale of a threat as the 1974 miners' strike.
1978, the TUC rejected the Labour gov's proposed wage increase limit of 5%. So, the unions demanded more.
The disputes ended March 1979 and the average pay increase achieved was 10%.
Winter of 1978 and 1979.
The winter of discontent had a devastating impact on the public mood.
Strikes included: lorry drivers, train drivers, dustmen, gravediggers, hospital porters - caused social outrage + shock.
Callaghan as PM, 76-79
1976, Callaghan's speech to Labour Party - productivity need to improve to avoid the 'twin evils' of unemployment + inflation.
Loan from the International Monetary Fund of £3 billion + the gov made big public spending cuts.
Prime minister 1976 - 1979 - he had experience and good links to unions - seen as an ideal leader for party unity.
The economy recovered thanks to the loan but it reinforced the image of Britain as in economic decline - the conservative saw it a humiliation + the left saw it as a betrayal, caving into international financiers.
1976, the poor balance of payments put pressure on the sterling.
Inflation rates fell to 10% + unemployment began to decrease.
Devolution
1978, Devolution Acts for Scotland and Wales opened referendums (public votes on an issue).
The terms of the referendum made it unlikely that devolution would pass e.g. at least 40% of the electorate had to approve of devolution in order for it to pass.
The majority of MPs in the Conservative party and many in the Labour Party were against devolution.
The vote in Wales was conclusively against devolution. In Scotland more votes were in support of devolution but a simple majority was not enough so devolution was defeated.
Nationalists in Scotland and Wales had been growing in strength since the late 60s.
1979, general election
The economic situation had deteriorated + the reputation of trade unions was damaged - moe skilled + unskilled workers voted conservative.
The conevrtaives won with comfortable majority of 43.
The winter of discontent was highly influential - many media outlets supported the conservatives.
The conservative benefited by a sharp drop in support for the Liberals and Scottish Nationalist Party.
Northern Ireland
1976, Special Category Status was removed from terrorist prisoners- no longer considered political prisoners only criminals.
The removal of status as political prisoners led to over 250 prisoners protesting in 1979 - they refused to wear prison uniforms the 'blanket protest'.
Elections in 1975, saw a majority for unionists who opposed any form of power sharing.
1974 strikes by the Ulster Workers' Council overly limited power and telecommunications - the British gov declared a sate of emergency and Wilson was forced to reimpose direct rule.
May 1974, Sunningdale Agreement collapsed.
Wilson as PM initial issues, 74-76
Oct 1974, Wilson called a new election and won a weak majority of only 3.
The Labour Party was less united and Wilson himself was older and less energetic.
Inflation was at 15% + the balance of payments deficit was £3 billion.
As a minority government Labour had to depend on support form the rparties o get legislation passed.
When Wilson came to power in 1974, he was in much worse position than he had been in 1964 as PM.
The trade unions needed to be dealt with.
Wilson was Prime Minister for the 2nd time 1974- 1976
Industrial relations + eonomic reforms 74-76
Industrial reforms, 74-76
Wilson's chancellor, Denis Healey, issued 2 budgets aiming to deal with the economic crisis without annoying the unions.
Whilst in opposition, Wilson negotiated the 1973 Social Contract - Involved voluntary pay restraint by the trade unions + Wilson would repeal Heath's Industrial Act.
An agreement was quickly made with the NUM (National Union of Miners) allowing Wilson to end the state of emergency and 3 day week.
When Wilson came to power he acted quickly to demonstrate that the Labour Party was better equipped to work with trade unions.
Economic reforms, 74-76
1975, Chancellor Dennis Healey gave a speech in Leeds warning of the dangers that wage inflation caused unemployment and the vital need to control public spending.
1975, Healey's budget imposed steep rises in tax and public spending cuts.
First major issue was high inflation due to the large wage increases needed to get out of the industrial crisis.
Conservative opposition to the government saving 'lame duck' industries e.g. the failing car manufacturer
British Leyland
.
The social contact was ineffective in limiting wage demands, so in 1975 a more formal pay restrict policy was introduced.
These shifts in policy increased party divisions, e.g. left wing Michael Foot didn't want to put so much pressure on unions.