Heath's Government, 1970-74

• Heath came from a lower middle-class background. He was educated at Oxford.
• Heath reduced aristocratic leadership in the Tory Party. Heath promoted colleagues on merit.
• Heath's first Chancellor was Barber. Thatcher became Education Secretary,
• Heath was influenced by the ideology of the "New Right".
• Government intervention was reduced under Heath's government. This allowed markets to decide prices and wages.
• The New Right was adopted in Selsdon Park in January 1970.
• A new Tory voter who wanted more control of their affairs was given the nickname of "Selsdon Man".
• Less government intervention caused the breakdown of the post-war consensus.
• The government introduced an "internment" in August 1971 in Northern Ireland. This is because they could arrest troublemakers without a trial.
• A problem with internment was that the people that were arrested were mainly innocent.
• Bloody Sunday compounded NI problems together in January 1972. 14 people were killed during this event.
• British troops opened fire on Catholic protestors during Bloody Sunday. They opened fire in Londonderry.
• The IRA retaliated with a bombing campaign on mainland Britain after Bloody Sunday.
• Britain suspended the Stormont parliament. They adopted the policy of "direct rule" to do this.
• Most politicians agreed that some degree of power sharing between Catholics and Protestants was necessary.
• Willie Whitelaw introduced the Sunningdale Agreement. He was the Secretary of State for Northern Ireland.
• A new executive of representatives from both communities allowed Catholics and Protestants to govern the province.
• Hard-line Protestants paralysed the NI province. Reverend Ian Paisley particularly influenced them.
• Hard-line Protestants started a 15-day strike that defeated the Sunningdale Agreement.
• The government abandoned their commitment to minimal intervention following economic issues.
• Heath nationalised the aircraft engine manufacturer, Rolls-Royce in 1971.
• Upper Clyde Shipbuilders received a subsidy to stay afloat. They received £35 million.
• Post-war prosperity was largely dependent on cheap fuel.
• OPEC (Organisation of Petroleum Exporting Countries) was the biggest provider of cheap fuel. They were based in the Middle East.
• A major war broke out between Israel and its Arab neighbours in September 1973.
• OPEC reduced oil supply to respond to the major war of September 1973. Prices were raised.
• A barrel of oil increased from US$2 in 1973 to US$35 in 1980.
• There was a shortage of fuel and petrol for industry and transport following the oil crisis.
• Imports became more expensive due to the oil crisis.
• The £ fell to $1.50 in terms of value. This led to huge budget deficits.
• Inflation grew again after falling in the early 1970s. This increased to 16% by 1974.
• 785,000 people were unemployed by 1973. 1,603,000 by 1978.
• Heath called an election in February 1974. This was on the basis of "Who governs Britain?".
• American journalist Anthony Bailey wrote that "the Catholics were gerrymandered out of representation".
• UDA Protestants claimed that Catholics were "the enemies of Faith and Freedom" on a leaflet.