The Reason's for Labour's Defeat in 1979

• Many commentators believed that Callaghan would call an election in 1978. Callaghan enjoyed popularity as PM.
• The economy appeared to be recovering but inflation and unemployment still remained high.
• Callaghan waited until 1979 to call an election because he hoped the economy would recover further. This was a fateful decision because the Tories won in 1979.
• Culminated problems in 1978 led to the Winter of Discontent. Callaghan wanted to extend the Social Contract.
• 1.4 million people were unemployed in 1978. Inflation was over 10%
• Pay increases were limited to 5%. Callaghan couldn't renew the Social Contract as a result.
• TUC and the Labour Party dismissed the Social Contract at the 1978 Labour Conference.
• Strikes took place as a result of the Social Contract failing. Low-paid public sector workers had been squeezed because of the Contract.
• Manufacturing in Britain was in decline in the 1970s. This was Labour's biggest support base.
• Manual output fell from 34% to 30% between 1970 and 1977. 2 million jobs were lost as a result.
• Labour had been dependent on political support from the Liberals. The 1977 Lib-Lab Pact wasn't renewed.
• Labour relied on SNP MPs after the collapse of the Lib-Lab pact. This support come on the condition that Scotland would get some measure of devolution.
• The SNP withdrew support from Labour when they lost their devolution referendum. The Labour government was now a minority government.
• The Tories called a "vote of no confidence" on the Labour government on 28 March 1979. Labour lost by one vote.
• The successful "vote of no confidence" forced Callaghan to call an election.
• Labour appeared tired in 1979. The Conservatives appeared buoyant.
• Thatcher had proved to be an effective leader since ousting Heath in 1975.
• The Tories contacted Saatchi and Saatchi for their 1979 campaign. An example of an effective campaign poster was "LABOUR ISN'T WORKING".
• The Tories targeted middle-class voters in their 1979 manifesto. They promised to increase spending on the police and defence.
• The Conservatives promised that union reform would take place. This was meant to prevent a repeat of striking.
• The Tories spoke to the working class. They wanted to better themselves.
• The particular idea of selling council houses to tenants was popular under the working-class.
• The New Right and Monetarist economic policies in the Tory manifesto were more controversial. The manifesto could be described as vague.
• The Tory manifesto declared the election was about "the future of Britain". This was described as "a great country which seems to have lost its way".