Labour Governments

• Who were the leaders of the Labour government in 1974?

  Harold Wilson and James Callaghan
• What economic situation did Harold Wilson face in March 1974?

  Inflation was at 15% and a £3 billion deficit
• What was the state of the Labour Party when Wilson returned to power?

  It was less united than ever
• What challenges did Wilson face as a minority government?

  He needed support from other parties for legislation
• What did Wilson do by October 1974?

  Called a new election
• How did voters perceive Heath and the Conservatives in 1974?

  They associated them with the three-day week
• How many seats did Labour gain in the October 1974 election?

  18 seats
• What was the overall majority of Labour after the October 1974 election?

  Only 3 seats
• What was Wilson's approach to trade unions upon returning to government?

  He wanted to avoid confrontations with them
• What agreement did Wilson negotiate with the TUC in 1973?

  The Social Contract
• What was the outcome of Wilson's agreement with the NUM?

  It ended the state of emergency
• Who were the two left-wingers in charge of key departments?

  Tony Benn and Michael Foot
• What did Denis Healey aim to achieve with his budgets?

  To address the economic crisis without upsetting unions
• What caused the surge in inflation in 1974?

  Large wage increases to resolve the industrial crisis
• What did Healey warn about in his January 1975 speech?

  Wage inflation could lead to unemployment
• What measures did Healey's April 1975 budget impose?

  Steep rises in taxation and cuts in public spending
• What was the purpose of the National Enterprise Board (NEB)?

  To manage government shareholdings in private companies
• What controversy arose from the nationalization of British Leyland?

  Debate over government intervention in failing industries
• What was introduced in 1975 regarding wage demands?

  A more formal pay restraint policy
• When did Harold Wilson resign as leader of the Labour Party?

  March 1976
• Who succeeded Wilson as Prime Minister?

  James Callaghan
• What economic challenges did Callaghan face during his premiership?

  Poor balance of payments and currency reserves
• What did Callaghan warn about in his September 1976 speech?

  The 'cosy world' of full employment was gone
• What did Callaghan's government plan to do in response to economic pressures?

  Apply for an emergency loan from the IMF
• How much was the loan received from the IMF in December 1976?

  £3 billion
• What were the conditions of the IMF loan?

  Big spending cuts had to be made
• How did the economic situation change after the IMF crisis?

  The economy began to recover
• What was the public perception of Britain during Callaghan's government?

  It was seen as being in economic decline
• What did the left wing of the Labour Party think about the IMF loan?

  They saw it as a betrayal to financiers
• What was the impact of North Sea oil on the economy by 1978?

  It contributed to economic improvement
• What was the unemployment rate in 1978?

  1.6 million
• What was the significance of the Lib-Lab pact in 1977?

  It helped Callaghan defeat a no-confidence vote
• What did Callaghan promise in return for Liberal support?

  To advance devolution for Wales and Scotland
• What was the outcome of the devolution Acts passed in 1978?

  They opened the way for referendums
• What clause was inserted into the devolution referendum terms?

  40% of the electorate had to approve
• What was the turnout for the devolution referendum in Scotland?

  62%
• What was the result of the devolution referendum in Wales?

  Conclusively against devolution
• What happened in Scotland despite more votes for devolution?

  Devolution was defeated due to rules
• What was the public response to the winter of discontent in 1978?

  It led to higher demands from trade unions
• What was the average pay increase achieved during the winter of discontent?

  10%