Chapter 5

• How Harold Wilson appeared during the election

  • Made the party appear modern, dynamic and progressive
  • Appeared to be more progressive and showing how people with humble backgrounds could succeed
  • Appeared classless
• How the electorate regarded the Conservatives

  • Seen as out of date and had too many aristocrats
  • Blamed for a bad economy
  • Largely disliked for this out of touch look
• How the revival of the Liberal party influenced the election


  • Drew more voters away from the far right
  • Gave voters an alternative to Labour and the Conservatives
• A by-election in Orpington in 1962 showed the Liberal party's revival, with a 14,000 Tory majority being overturned by a Liberal majority of 7,850
• How British society changed in the 1950s

  • The young became more independent and no longer wanted to listen to the traditional Tories
  • Society changed views towards more liberal subjects such as self-expression shown more in novels, TV and cinema
• Why the election results were so close

  • Douglas-Home turned out to be a more effective PM than expected
  • Maulding cut taxes in 1963, which was good for the poor
  • Many people didn't like Labour's links to the trade unions and distrusted them
• Problems Wilson faced as PM

  • Labour had only a 4 seat majority, showing they were still at risk of Conservative domination
  • Labour had promised to modernise Britain, which would be difficult due to the bad economic situation
• Wilson's characteristics


  • Highly intelligent and hard-working
  • Very charming, which made him acceptable to both sides of the party
  • Preferred compromise over conflict
• How Labour transformed British society

  Passed laws such as the Race Relations Act, legalising abortion, and legalising homosexuality in private
• How Labour dealt with race relations

  Immigration acts were tightened in 1965 and 1968, despite wanting a progressive Britain, due to racial prejudice and fear of competition for jobs among Labour voters
• What happened to education policies

  • Crosland started changing the exam system at age 11 to move towards comprehensive schools
  • There was a push to increase access to higher education, including the establishment of the Open University
• Wilson's view on the Vietnam War

  Positive about the US entering the war, but tried to appease the left by saying he would not send British troops to fight
• How Wilson managed the Labour cabinet

  Avoided huge splits in the party by giving senior roles to people of all opinions, but this often resulted in bitter arguments
• Britain's economic difficulties


  Huge deficit of £800 million left to the Labour party, believed to be caused by Britain lagging behind its competitors
• What British firms and the government needed to do

  • Improve efficiency by investing in new technology and machinery
  • Grant wage increases only if workers were more productive
  • Use tax revenue to develop transport, maintain investment in nationalised industries, and ensure a well-trained workforce
• How trade unions contributed to economic difficulties

  Threatened strikes to demand wage increases during inflation, resisted government attempts to link pay to productivity, which increased labour costs and reduced profits for investment
• Wilson's economic policies


  Had to choose between deflation (tax rises and/or spending cuts) or devaluation to deal with the deficit
• Deflation


  Reducing the amount of money in people's pockets to decrease spending power and imports, boosting British products
• Devaluation


  Reducing the value of the pound to make British products cheaper and boost exports, but increasing the cost of imports
• Wilson ruled out devaluation because he knew it had destroyed previous Labour governments, didn't want to upset the Americans, and didn't want to be seen as taking the 'easy way out'
• The National Plan


  Set out in 1965, aimed to improve British industry's competitiveness through better planning and targets for growth and exports, but had little chance of success due to lack of power
• What happened during the devaluation period of 1967


  Seamen's strikes damaged exports, leading to further deflation rather than devaluation, but unemployment still rose
• How successful was devaluation

  Trade figures were slow to improve, it barely stopped the payment deficit, but by 1969 the balance of payments showed a surplus
• Economic record of the Labour government

  Inflation not slowed, unemployment higher in 1970 than 1964, Britain's relative decline continued, lack of investment in modernising the North and Scotland
• Wilson's beliefs about industrial relations

  Strikes for higher pay were disrupting production and contributing to inflation, industrial relations needed more regulation
• Trade unions' arguments


  Lack of competitiveness should be blamed on companies and government, preventing wage rises penalised workers, union rights were being restricted
• 'In Place of Strife'


  Barbara Castle's plan to reform industrial relations, giving employees a legal right to join a union but allowing the government to order ballots and cooling-off periods, was extremely disliked and rebelled against
• Membership of selected unions varied, typically falling in nationalised industries but increasing in more private sectors
• Labour weaknesses in the 1970 election

  Wilson's complacency, disillusionment of Labour supporters, and failure of 'In Place of Strife'
• Conservative strengths in the 1970 election

  • Conservative policy proposals to reform industrial relations and reduce state intervention
  • Heath's leadership and focus on tackling inflation and unemployment
• Heath's aims as Prime Minister


  Strengthen the economy and curb inflation, reform industrial relations, create 'one nation', and be an active member of the EEC
• f share of exports of manufactured goods 25%(1950) to 11%(1970)
• Conservative policy proposals


  • Industrial relations law would be reformed to reduce the number of disruptive strikes and inflationary pay settlements
  • There would be less state intervention in industry
  • Attempts to control prices
  • Britain would apply to join EEC
• Edward Heath's leadership


  • Heath banged on about inflation, measured by the Retail price Index, had risen by 33% and unemployment by 200,000
  • Daily Express praised Heaths 'guts and leadership'
  • He sacked Enoch Powell, showing he had cabinet under control- which was liked by many Tory's
• Heath's aims


  To strengthen the economy and curb inflation, reform industrial relations, and create 'one nation' whilst also being an active member of the EEC
• Heath's economic record was poor, the conservatives had inherited an inflation rate of 5% but this then reached 10% after 4 years, meaning inflation hadn't been stopped
• Britain became a full member of the EEC on Jan 1st 1973, Heath liked the idea of joining the EEC to bring about a stronger economy for UK. The application was better now since the French PM did not dislike UK, unlike de Gaulle
• Conditions of the Industrial Relations Act, August 1971

  Workers had the legal right to join a trade union, NIRC and IRC were formed and trade unions were required to register with them, any union that failed to register was given a fine
• The Industrial Relations Act failed because these conditions were too similar to 'In Place of Strife', which put people off agreeing to it, also the TUC told their people not to register and this made it not work and many TUC members were militant and not willing to do otherwise, the act was undermined
• Heath was slightly less successful than Wilson despite in place of strife this was largely due to the hostility towards the industrial relations act but mainly due to the 10% inflation. As prices rose workers wanted wage increases but the Government wasn't giving them it.